Enterprise software firms JDA and RedPrairie are to merge, in a $1.9bn deal that will bring together solutions and services to manage global supply chains from raw materials, to finished products, to consumers.

RedPrairie, which is owned by private equity fund New Mountain Capital, is offering $45 per share for all of JDA's common stock. The transaction will create one of the largest global software companies with combined revenues of over $1bn.

The deal is expected to close by the end of this year, and will see JDA CEO Hamish Brewer lead the combined company as CEO. RedPrairie's CEO, Michael Mayoras will be on its board.

"The combined company will have a unique ability to address our customers' increasingly complex needs with a full spectrum of solutions for planning and execution across the entire value chain," Brewer said.

JDA offers supply chain planning, merchandising and pricing solutions, while RedPrairie specialises in warehousing, workforce management, store operations and e-commerce.