New Mountain Capital Completes Acquisition of RedPrairie

Private equity fund acquires supply chain execution specialist, looks to 'accelerate growth and strategic development'

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Milwaukee, WI — March 24, 2010 — Private equity fund New Mountain Partners has closed its purchase of RedPrairie, taking ownership of the 35-year-old supply chain execution specialist. Terms of the deal were not disclosed.

This deal follows the announcement earlier this week that supply chain solution provider Logility was acquiring network planning and optimization provider Optiant. (See SDCE news story here and a quick take on the Logility-Optiant deal from Altimeter Group analyst Lora Cecere here.)

RedPrairie, founded in 1975, is a provider of supply chain execution solutions for manufacturers, distributors and retailers. The company offers supply chain management, workforce management and in-store productivity tools. RedPrairie had filed at the end of last year for an initial public offering, but when the New Mountain acquisition was initially announced in February, the company's CEO said that the IPO would not be off the table until the deal's closing, announced today.

"The completion of this acquisition marks an exciting new chapter in RedPrairie's history," said Mike Mayoras, CEO of RedPrairie, in a statement on the acquisition. "We believe there are many exciting opportunities to further accelerate our business, provide more value to our customer base, and enter new markets. We look forward to working with New Mountain, our new board members, our employees, and customers to capitalize on these opportunities."

Alok Singh, managing director of New Mountain, said in the statement, "We intend to work closely with RedPrairie's management team and help them accelerate their growth and strategic development with the goal of providing enduring value to customers and further build on their existing position of being a leading productivity solutions provider."

RedPrairie's "best-of-breed" solutions are consistently deployed in the most complex and demanding supply chain and retail environments and create substantial return on investment for its customers through improved management of labor, inventory flow and transportation.

The RedPrairie senior management team will remain in place. CEO Mayoras and President Martin Hiscox will continue as members of the board of directors. New Mountain's CEO Steven Klinsky, along with the firm's Singh and Peter Masucci, will join the board.

Nanci Caldwell (former PeopleSoft chief marketing officer), Lawrence Jackson (former Wal-Mart global procurement CEO and President), Tom Manley (former Avaya chief financial officer and former Cognos CFO) and Janet Perna (former IBM Information Management general manager) will also join the board as independent directors.

New Mountain Partners is a fund of New Mountain Capital, a New York-based private equity firm. The firm currently manages private and public equity funds with approximately $8.5 billion in aggregate capital commitments.