JDA Software Group, Inc., a Scottsdale, Ariz.–based provider of integrated retail, omni-channel and supply chain planning and execution solutions, has completed a $570m recapitalization.
The equity investment – expected to be completed by early Q4 2016, pending customary closing conditions – was made by funds managed by Blackstone (NYSE: BX) and New Mountain Capital (NMC). NMC, which has been the company’s majority shareholder since JDA’s merger with RedPrairie in 2012 will remain as the company’s majority shareholder post-investment.
The new capital will be used to accelerate product innovation and growth plans and accelerate opportunities for current product development and enhancements. The investment will have no cash interest costs for JDA and will be used to retire existing debt and reduce its interest expense by $70m per year.
Led by Bal Dail, Chairman and Chief Executive Officer, JDA provides end-to-end, integrated retail, omni-channel and supply chain planning and execution solutions to more than 4,000 manufacturing, third-party logistics, wholesale distribution and retail customers worldwide to reduce costs, increase profitability and improve collaboration.
The investment will allow the company to accelerate its R&D investment by building cloud-based solutions on Google Cloud Platform, JDA’s strategic cloud partner of choice.