Manugistics Software Services India will now be JDA Software India Private Limited. The supply chain and revenue management solutions company, Manugistics Group Inc, has been acquired by JDA Software Group Inc for around $213 million in cash.
The JDA Software Group now stands at approximately $400 million, in terms of revenues, and 1,800 in terms of associates.
The combined client base has increased to over 6,000. JDA has a client base of about 10 in India, and with this acquisition there is likely to be cross-selling opportunities for both the companies.
Manugistics has a product development centre in Hyderabad with around 225 employees. Salil Joshi, managing director of the development centre, said, "JDA has been a major player in the retail and consumer goods market.
They have been strong in products that manage supply chain from the distribution centre to the store. Manugistics has been strong in managing the supply chain from the raw materials to the distribution centre. This synergy will help us in providing products to meet the requirements from the raw materials stage to the consumer stage."
While JDA has operated in business segments such as retail enterprise segments, store systems and collaborative solutions, Manugistics has operated in retail, consumer goods manufacturing, travel, transportation and hospitality and government, aerospace and defence.
Now JDA will regroup into retail, consumer goods and distribution, travel, transportation and hospitality and government, aerospace and defence.
The product development centre of Manugistics in India has retained full ownership of products developed out of here.
Post-acquisition, the centre will continue doing so. "In fact, in future, we may start working on products that JDA has been developing thus far," Joshi added.
While JDA has not outlined any specific plans for India, Joshi said he expected the Indian operations to see additional investment soon.
In 2005, Manugistics had announced an investment of $75 million in India over 10 years. The company is contemplating expanding to Pune.
Manugistics has been the 10th acquisition for JDA but the first involving a company with a development centre in India. Some of its earlier acquisitions have been Timera Retail Solutions, Engage, Inc and Vista Software Solutions.
