USA: JDA Buys Inventory Optimisation Expert E3
Terms of the deal were $20 million dollars in cash and 1.6 million shares of JDA Common Stock for a purchase price of around $50 million dollars.
"In our drive to reach the $500 million mark, we will continue to build or acquire solutions that offer unlimited growth potential," commented JDA CEO Jim Armstrong. "By acquiring a market leader such as E3, we have immediately gained the highest level of market share in the inventory replenishment space. Importantly, with approximately half of E3's clients being non-retail, we will accelerate our CPFR initiative by gaining presence in the wholesale and distribution industries, which we had already targeted for growth."
Founded in 1980, privately held E3 has helped over 550 retailers, wholesalers, distributors and manufacturers in 20 countries to maximize their inventory decisions with computer assisted ordering and replenishment systems.
A key factor influencing JDA's acquisition was E3's readiness to launch Unix versions of its leading E3TRIM replenishment product. "Since approximately 110 of our clients are also E3 users, we have a real appreciation for this solution's power and have long viewed E3 as the best brand in forecast-based replenishment," commented JDA president, Hamish Brewer. "The imminent availability of the Unix version gives us a much broader opportunity base and strongly supports our tier one growth strategy."
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