Equity Fund Completes Purchase of RedPrairie

Supply chain execution specialist says deal will help accelerate its growth through acquisitions and organic expansion

Supply chain execution specialist says deal will help accelerate its growth through acquisitions and organic expansion

Waukesha, WI — May 24, 2005 — A private equity fund has completed its purchase of supply chain execution specialist RedPrairie Corporation in a deal that the solution provider said would allow it to accelerate its growth rate through additional acquisitions and organic expansion.

Menlo Park, Calif.-based Francisco Partners, one of the world's largest technology-focused private equity funds, announced this morning that it had closed its merger transaction to acquire RedPrairie.

The two parties did not reveal financial details of the transaction, which was initially announced in April. RedPrairie, formerly known as McHugh Software International, is based in Waukesha, Wis., and has been providing distribution, warehouse and supply chain solutions for some 30 years.

"RedPrairie has consistently grown 30 percent each year for the last three years, well ahead of our industry," said John Jazwiec, RedPrairie company leader. "However, we had reached an inflection point that required enhanced funding options. This transaction will strengthen RedPrairie's ability to leverage its leadership position and signifies a further step in our growth strategy."

David Golob, general partner of Francisco Partners, said that his company believes RedPrairie "is best positioned in its industry to address market opportunities and leverage its unparalleled customer base for long-term value creation."

Greg Aimi, research director at AMR Research, said that the acquisition reduces risk for RedPrairie customers. "We expect that RedPrairie and Francisco Partners will pursue an aggressive growth strategy," Aimi said in a research note following the announcement of the deal. "Customers and prospects should expect the following: global expansion, innovation and potential acquisitions. No matter what, we expect that the customers should finish ahead."


Additional Articles of Interest

For more information on the latest trends in the fulfillment space, see the article "The Analyst Corner: Fulfillment & Logistics" in the October/November 2004 issue of Supply & Demand Chain Executive.