Deal brings together major players in the retail solutions market
Scottsdale, AZ — June 17, 2004 — Retail solutions specialist JDA Software Group is acquiring collaborative commerce solutions provider QRS in an all-stock transaction that will create a combined company with annual revenues in excess of $340 million.
In a statement, JDA said that the deal, valued at approximately $100 million and expected to close in the fourth quarter, would "significantly enhance its position in the global field of demand chain solutions providers," leaving JDA "uniquely positioned to deliver data rich software, best practice processes, trading community enablement and industry expertise."
In addition, the two companies are projecting that they will be able to realize $20-$25 million in cost savings through the deal, and that the combined company will benefit from improved revenue and earnings visibility since approximately 50 percent of its revenues are expected to be recurring.
Hamish Brewer, JDA's CEO and president, said in the company statement that the acquisition was compelling on three fronts. "First, JDA is now faced with a world of new opportunities. QRS offers one of the world's leading trading and product information management networks. We intend to seamlessly merge this data with existing JDA products to provide a new class of applications that are inherently data-rich, collaborative and connected."
Brewer explained that QRS' transaction services and rich data set — including product, transaction and market data from the store floor — would bring real-time information from across the demand chain into JDA's software. "For the first time, our customers will be able to rely on one company, JDA, to combine external data with internal enterprise and customer data to ensure the most effective, knowledge-based decision making," Brewer said.
Brewer also cited the two companies shared customer base, which, he said, "provides a wealth of cross-selling opportunities." QRS said it has more than 10,000 customers, based on companies that purchased or licensed QRS products and services in 2003. JDA has about 4,500 retail, manufacturing and wholesale clients.
"And finally," Brewer concluded, "this acquisition will establish a new business model combining high margin software licenses with stable, recurring revenues."
Under the agreement, QRS will be merged with a wholly owned subsidiary of JDA. Upon completion of the acquisition, the current JDA senior management team will add James G. Rowley, who currently serves as QRS' senior vice president, global engineering, support & technology and chief technology officer, and who will join JDA as senior vice president of operations; and Ray Rike, who currently serves as QRS' senior vice president, worldwide sales and field operations, and who will join JDA as senior vice president, collaborative solutions.
Scottsdale, AZ — June 17, 2004 — Retail solutions specialist JDA Software Group is acquiring collaborative commerce solutions provider QRS in an all-stock transaction that will create a combined company with annual revenues in excess of $340 million.
In a statement, JDA said that the deal, valued at approximately $100 million and expected to close in the fourth quarter, would "significantly enhance its position in the global field of demand chain solutions providers," leaving JDA "uniquely positioned to deliver data rich software, best practice processes, trading community enablement and industry expertise."
In addition, the two companies are projecting that they will be able to realize $20-$25 million in cost savings through the deal, and that the combined company will benefit from improved revenue and earnings visibility since approximately 50 percent of its revenues are expected to be recurring.
Hamish Brewer, JDA's CEO and president, said in the company statement that the acquisition was compelling on three fronts. "First, JDA is now faced with a world of new opportunities. QRS offers one of the world's leading trading and product information management networks. We intend to seamlessly merge this data with existing JDA products to provide a new class of applications that are inherently data-rich, collaborative and connected."
Brewer explained that QRS' transaction services and rich data set — including product, transaction and market data from the store floor — would bring real-time information from across the demand chain into JDA's software. "For the first time, our customers will be able to rely on one company, JDA, to combine external data with internal enterprise and customer data to ensure the most effective, knowledge-based decision making," Brewer said.
Brewer also cited the two companies shared customer base, which, he said, "provides a wealth of cross-selling opportunities." QRS said it has more than 10,000 customers, based on companies that purchased or licensed QRS products and services in 2003. JDA has about 4,500 retail, manufacturing and wholesale clients.
"And finally," Brewer concluded, "this acquisition will establish a new business model combining high margin software licenses with stable, recurring revenues."
Under the agreement, QRS will be merged with a wholly owned subsidiary of JDA. Upon completion of the acquisition, the current JDA senior management team will add James G. Rowley, who currently serves as QRS' senior vice president, global engineering, support & technology and chief technology officer, and who will join JDA as senior vice president of operations; and Ray Rike, who currently serves as QRS' senior vice president, worldwide sales and field operations, and who will join JDA as senior vice president, collaborative solutions.
