(Reuters) - JDA Software Group Inc JDAS.O, a maker of supply-chain management software, agreed to be bought by privately held rival RedPrairie for about $1.9 billion in cash.
The $45 per-share offer represents an 18 percent premium over JDA’s Wednesday close. JDA shares, which closed at $38.15 on the Nasdaq, rose to $44.76 on Thursday morning.
Reuters reported on Monday, citing sources, that JDA was exploring a sale and had hired JPMorgan Chase & Co (JPM.N) as adviser.
The offer price represents a 33 percent premium to JDA’s stock price on Friday, the last trading day before rumors surfaced that JDA was exploring a sale, the companies said in a joint statement.
JDA also reported lower-than-expected third-quarter results as software and subscription revenue slipped 18 percent on weak license sales in Europe and to manufacturers in North America.
The company said consulting services revenue fell 4 percent to $64.3 million mainly due to reduced work from a customer in the Asia-Pacific region.
JDA Software provides customized software applications to customers ranging from government and aerospace defense contractors to hospitality and media organizations.
“This is a strong combination of two leading companies with highly complementary product suites,” JDA’s Chief Executive Hamish Brewer said in a statement.
The deal, expected to close by the end of 2012, will create a company with combined revenue of over $1 billion to be led by JDA’s Brewer, the companies said.
RedPrairie CEO Michael Mayoras will remain on the board of the combined company.
The deal will be funded with a loan from Credit Suisse and additional new cash equity from New Mountain Capital, which owns RedPrairie.
Greenhill & Co (GHL.N) and Credit Suisse acted as financial advisers to RedPrairie.
JDA canceled its third-quarter earnings conference call scheduled for Nov 5.
Reporting by Supantha Mukherjee and Sayantani Ghosh in Bangalore; Editing by Supriya Kurane