Blackstone Group LP (NYSE: BX) and New Mountain Capital have agreed to invest $570 million in JDA Software Group Inc. NMC will remain JDA’s majority shareholder. The latter acquired a stake in JDA when the target merged with rival RedPrairie Corp. in 2012.
JDA, founded in 1985 and based in Scottsdale, Arizona, develops data software that allows retailers to manage inventory and logistics based on sales, consumer demand and future forecasts. The target has more than 4,000 customers.
“This investment will accelerate our future growth plans and vision for the business,” says JDA CEO Bal Dail. JDA is going to use the capital to pay down debt and develop new products.
Retail data providers have become attractive targets as companies try to keep up with changing shopping patterns from brick-and-mortar stores to e-commerce. HGGC has acquired Instantly Inc.; Nuance Communications Inc. (Nasdaq: NUAN) purchased TouchCommerce; Tyco International plc (NYSE: TYC) purchased ShopperTrak; and WPP plc agreed to buy Conexance.
Bank of America Merrill Lynch, Credit Suisse and Goldman Sachs & Co. (NYSE: GS) are advising Blackstone. JPMorgan Chase & Co. (NYSE: JPM) and Seth Bernstein SMB Capital are advising JDA.