Report: Honeywell to Acquire JDA Software for $3 Billion

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August 15, 2016 10:07am NYSE:HON

honeywell-hon-logoAccording to a Wall Street Journal report, venerable industrial giant Honeywell International Inc. (NYSE:HON) is set to acquire privately-held JDA Software, a maker of supply chain management systems.

The deal promises to give Honeywell an even bigger footprint in the fast-growing world of B2B software. From the WSJ:

The industrial conglomerate’s chief executive, David Cote, says about half of the New Jersey-based company’s 23,000 engineers are now working on software, as opposed to the heavy goods like jet engines and building control systems for which the company is best known.

Scottsdale, Ariz.-based JDA sells software that helps hundreds of retailers such as Walgreens and Advance Auto Parts optimize their supply chains and merchandising. It also provides warehouse management software to manufacturers and consumer products companies. The company, which was founded in 1985, has more than 4,300 employees, according to its website.

JDA Software has been privately held since 2012, when it was acquired by private equity firm New Mountain Capital for about $1.9 billion. Prior to being taken private, JDA traded on the NASDAQ stock exchange under the symbol JDAS.

The HON takeover hasn’t yet been formally announced, but both sides are expected to officially comment on the deal as early as today.

Honeywell shares rose $0.33 (+0.28%) to $116.43 in Monday morning trading. HON has gained 12% year-to-date, nearly doubling the return of the S&P 500 in the same period.


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