As expected (CI No 3,334), supply chain management company Manugistics Group Inc is to acquire privately held supply chain planning tools company Promira Software Inc. Analysts Deutsche Morgan Grenfell said in January that the deal was likely, and put a price on it of between $100m and $150m. But Rockville, Maryland-based Manugistics will pay just $68m, $5.3m in cash for outstanding Promira stock, and will issue 1,550,000 shares of Manugistics common stock. The deal has not yet been finalized but the companies are close to completion, and both company boards have approved the plans. Manugistics anticipates the deal will be closed by the end of the month, where upon it will take a $45m one time charge in its fourth quarter. Manugistics is confident that combining Ottawa, Canada-based Promira’s tools with its own offerings will create a comprehensive systems management product that will cater for an array of industries, including companies in the high technology, electronics and motor vehicle sectors. Promira has displayed excitement about the deal, not least because it will be able to reach new customers and become part of a much broader offering. There is already an offering available combining Manugistics5 with Promira’s reflex, SupplyNet and SmartBill tools, but a fully integrated offering will come with the next release of Manugitsics5, scheduled to hit the streets this summer.
