The combined company will have annual revenue of around $340m and JDA CEO Hamish Brewer said it would merge QRS’ trading and product information management network with existing JDA products to enhance its position as a demand chain provider.
Around 50% of the revenue of the combined company is expected to be recurring and the combined customer base should provide considerable cross-selling opportunities. Though integration of the two organizations is expected to cost $15m to $17m, JDA has targeted cost savings of $20m to $25m a year within the first 18 months. It expects the acquisition to be substantially accretive to its earnings in 2005.
QRS has an undistinguished financial record and in the year to December 31, 2003 recorded a net loss of $6.7m, up from a loss of $4.1m, on revenue 9.3% down at $123.3m.
However the reason that QRS has become JDA’s tenth acquisition is it provides one of the largest electronic product catalogues in North America with over 100 million items and enables buyers and sellers to comply in electronic data exchange by synchronizing product information and automating collaborative processes.
JDA wants to use its resources to roll out this busines model in other world markets.
