Tuesday, April 25, 2006

Hit #91

Manugistics (MANU) is being acquired by JDA Software (JDAS) for around $210 million in cash. This offer, of $2.5/share, is just a 4% premium over my cost-per-share of $2.4.

My cost-per-share would have been much lower, but for the initial purchase of a lot at around $6/share!

There is more to come in the supply chain software sector. JDA is getting Manugistics cheaply, and there is a small chance of another bid emerging. I would have preferred a stock swap with a substantial premium!

There will only be 2 players left in this field eventually, Oracle and SAP. JDA may remain as a standalone third player, but unlikely. JDA itself looks like an attractive buy today. Manhattan Associates (MANH) and SSA Global (SSAG) are also not expensive now.

I had mentioned Manugistics as a target a few times in the past, including in a post when QRS got bought and later in a post on possible targets for IBM.

Also worth watching - Lawson (LWSN), Retalix (RTLX) and QAD (QADI).

Previous hit - Russell (#90)


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