Private equity-backed RedPrairie Corp. agreed to spend roughly $1.9 billion in cash to buy rival JDA Software Group Inc. (Nasdaq: JDAS), a maker of supply-chain management software.
The price tag, which equates to about $45 per-share, represents an 18 percent premium over JDA’s close on Oct. 31.
New Mountain Capital LLC, which owns RedPrairie, is providing additional cash to fund the deal, while Credit Suisse acts as lender.
The transaction is expected to create a company with total revenue of more than $1 billion.
JDA chief executive Hamish Brewer will lead the merged entity, while RedPrairie’s chief executive, Michael Mayoras, will remain on the new company’s board of directors.
The merger, expected to close by the end of 2012, reportedly ends an auction process that began earlier this year and had been managed by JPMorgan Chase & Co. on behalf of Scottsdale, Ariz.-based JDA.
RedPrairie, based in Alpharetta, Ga., hired investment banks Greenhill & Co. and Credit Suisse to advise the deal.