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Exhibit 99.1
JDA INVESTOR RELATIONS CONTACT:
Kristen L. Magnuson, Senior Vice President, CFO
Phone: (480) 308-3000
JDA SOFTWARE GROUP, INC.
NEWS RELEASE
JDA PUBLIC RELATIONS CONTACT:
Michelle Kershner, Manager, Public Relations
Phone: (480) 308-3294; Email: michelle.kershner@jda.com
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JDA SOFTWARE TO ACQUIRE PRICER AB'S INTACTIX SUBSIDIARY TO EXPAND PRODUCT SUITE
WITH SPACE PLANNING SOLUTION; WILL ADD OVER 3,400 CLIENTS & OFFER RETAIL SUPPLY
CHAIN BUSINESS-TO-BUSINESS SOLUTION
SCOTTSDALE, ARIZ. - FEBRUARY 24, 2000 - JDA(R) SOFTWARE GROUP, INC. (Nasdaq:
JDAS), an international provider of enterprise retail solutions, announced today
that it has signed a definitive purchase agreement to acquire the assets of
INTACTIX, a market leading provider of space management solutions, from PRICER
AB, a Swedish provider of electronic shelf labeling systems, for $20.5 million
in cash. The Intactix business unit reported revenues of $24 million for the
year ended December 31, 1999, including $8 million in maintenance. JDA expects
the acquisition to be modestly accretive in fiscal 2000. The acquisition will be
accounted for as a purchase. The companies expect the acquisition to close by
the end of March 2000. The acquisition is subject to the approval of certain
governmental regulatory agencies and other standard conditions.
JDA EXPANDS PRODUCT SUITE WITH MARKET LEADING SPACE MANAGEMENT SOLUTION
The Intactix acquisition supports JDA's strategy for building upon its
integrated, enterprise retail solution with complementary products that address
the most pressing issues in retail today. In addition, this transaction enables
JDA to significantly extend its reach into the consumer product goods (CPG)
space. With a referenceable client base of approximately 3,400 companies
including Bristol-Myers Squibb Company, Coca-Cola Company, Johnson and Johnson,
Kmart Corporation, Procter & Gamble, Inc., Safeway UK, Sainsbury's, Sears,
Roebuck and Company (US), and Wal-Mart Stores, Inc., Intactix is widely known
for its market-leading space management solution for retailers and prominence in
the CPG industry. Combined with JDA's over 740 clients, the acquisition of
Intactix would increase JDA's client base to over 4,140, spring boarding JDA
into a position to provide software solutions for the entire retail supply
chain.
"The functions within the retail supply chain are becoming increasingly
blurred as retailers and consumer products goods manufacturers are looking for
solutions to minimize costs and maximize customer satisfaction through improved
operational efficiencies," stated JIM ARMSTRONG, JDA'S CEO. "By expanding our
analytical offering with Intactix space management solutions and growing our
presence in the CPG market, JDA will be solidly positioned to provide the most
comprehensive, integrated merchandise planning and business-to-business solution
for retailers and their suppliers."
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ACQUISITION PROVIDES BUSINESS-TO-BUSINESS SOLUTION FOR THE RETAIL SUPPLY CHAIN
The Intactix acquisition will enable JDA to introduce several new
applications in the Arthur Enterprise Suite of merchandise management
applications. Two of these applications will be marketed as: ARTHUR PRO/SPACE, a
next generation planogramming solution that allows users to build, analyze, and
distribute accurate and real-life planograms that are as graphically rich as
they are data intensive; and ARTHUR PRO/SPACE.NET, a business-to-business
solution. As delivered, Arthur Pro/Space.net will enable retailers and their
suppliers to collaborate over the Internet to build, analyze and distribute
accurate and real-life planograms. Following the introduction of the Arthur
E-Planning Portal, Arthur Pro/Space.net will become JDA's second
business-to-business solution in the Arthur Enterprise Suite. In addition to
Arthur Pro/Space and Arthur Pro/Space.net, JDA will continue to market the other
Intactix space management solutions to existing JDA clients.
The benefits of integrating the Intactix space management solutions
with JDA's products include:
o Expanded business-to-business solution. By integrating Arthur
Pro/Space.net with Arthur E-Planning Portal, JDA delivers the most
functionally rich business-to-business collaborative planning
solution for retailers and their suppliers to share plans and
up-to-the-minute results.
o Best of breed and seamless integration. By integrating store floor
and space planning with merchandise financial plans, assortment
planning, clustering, category analysis and decision making into
one seamless suite of strategic merchandise management
applications, JDA provides retailers and CPG manufacturers the
capabilities needed to perform top-down and bottom-up merchandise
planning.
o Comprehensive category management. By combining the Arthur
planning, assortment planning, allocation and performance analysis
applications, JDA's core merchandise management capabilities and
Intactix's advanced space management, retailers and CPG
manufacturers can collaborate to optimize the economic outcome for
a given grouping or category of products.
GREG MORRISON, JDA'S SENIOR VICE PRESIDENT, ANALYTIC APPLICATIONS
BUSINESS UNIT AND MANAGING DIRECTOR, JDA ARTHUR, will oversee the integration of
the Intactix products into JDA's business. Morrison is a seasoned professional
with a proven track record of being able to quickly integrate newly acquired
companies into JDA's business. Morrison was recently responsible for the
successful integration of the Arthur Retail Business Unit acquired in June 1998.
Reporting to Morrison will be KEVIN STADLER, currently Intactix's CEO and
president, who will serve as MANAGING DIRECTOR AND VICE PRESIDENT of JDA's new
Intactix product line.
"The combination of the JDA applications, in particular the Arthur
Enterprise Suite, with the Intactix applications provides unique capabilities to
the retail and CPG industry. We're particularly excited
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about the new Internet business-to-business possibilities that will be provided
by integrating our product sets," commented Stadler.
JDA EXPECTS IMPROVED PROFITABILITY FOR INTACTIX SOLUTIONS
Intactix reported that it was profitable in fourth quarter 1999 for the
first time since 1997. JDA expects to continue to improve profitability of the
Intactix product line by combining JDA's financial strength and leveraging
synergies across the new organization. As such, JDA will merge the duplicate JDA
and Intactix offices in 10 cities. JDA will retain Intactix's Dallas, TX head
office and move the JDA Dallas-based associates into the Intactix location and
share administrative resources.
"Since Pricer announced that it would sell its space management
subsidiary in 1998, Intactix has operated in a challenging mode. We expect that
by integrating Intactix into our business, we'll add the needed clarity for the
associates, clients and prospects regarding the longevity of Intactix products,"
stated Armstrong.
The positive results that JDA has realized since its June 1998
acquisition of the Arthur Business Unit from Comshare demonstrate JDA's ability
to strategically select acquisition targets and quickly assimilate them to
positively impact revenues in a short time frame. The Arthur acquisition was
accretive within the first year of JDA operation. Further, the Arthur Business
Unit realized record revenues during that time period.
ACQUISITION TO PROVIDE SELLING OPPORTUNITIES ACROSS THE SUPPLY CHAIN
In addition to expanding its product line, JDA's acquisition of
Intactix presents a wealth of new selling opportunities. The Company plans to
exploit the acquisition to expand its small but established presence in the CPG
space with the JDA Boost planning product. Approximately 40 manufacturers,
including such blue-chip companies as Levi Strauss Europe, Middle East and
Africa, Heineken, Bacardi and SC Johnson Wax, are using Boost. "We will merge
Boost with the Intactix applications and market the combined solution in the
retail and CPG spaces under the market-leading Arthur brand. Given that only
approximately 50 retailers and suppliers worldwide out of our combined client
base of over 4,140 use both JDA and Intactix, this acquisition enables us to
leverage and merge our respective market expertise to successfully cross-sell in
our newly expanded retail and CPG client base," stated Armstrong.
CONFERENCE CALL INFORMATION AND QUESTION & ANSWER DOCUMENT
JDA will host a conference call today at 8:30 a.m. Eastern Standard
Time to discuss its acquisition of Intactix. The following telephone numbers can
be used for anyone interested in participating: 1-800-450-0788 (United States)
or : (612) 288-0318 (International) and ask the operator for the "JDA
Discussion." A
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replay of the conference call will begin today at 11:30 a.m. Eastern Standard
Time and end on March 09, 2000 at 11:59 p.m. Eastern Standard Time. Interested
parties can hear the recall by dialing 800-475-6701 (United States) or (320)
365-3844 (International) using Access Code 504614.
Additionally, interested parties can hear the conference call over the
Internet through Vcall. To listen, callers must log onto the Vcall web site,
http://www.vcall.com, by 8:15 a.m. EST to register, download and install any
necessary audio software. For those who cannot listen to the live broadcast, a
replay will be available on Vcall shortly after the call and a transcript will
be posted to Vcall's web site 24 to 48 hours after the call.
A Question and Answer document is available at http://www.jda.com under
"News & Events" for more information.
ABOUT INTACTIX SPACE MANAGEMENT SOLUTIONS
Intactix provides products and services that help space and category
managers perform their tasks. These tasks include planogram and database
translation; planogramming/space management; planogram data collection/auditing;
assortment analysis and planogram production; inventory management; store
planning and modeling; integrated database management; and category management.
The products include Pro/Space, next generation planogramming product;
InterCept, aWindows-based space management system; AutoPilot, space management
automation; Planogram Site Builder, Web page layout for InterCept planograms;
InterRange, an assortment analysis and production tool, InterPrint, a printing
solution; Pro/Retail, a 32-bit interface; Pro/Sortment, a 32-bit item assortment
tool; and Pro/Floor, a top down retail floor planning tool.
ABOUT PRICER AB
Pricer AB was founded in 1991 in the city of Uppsala, Sweden. In only a
few years, it has built a leading position in the growing market of electronic
price and information systems for the retail trade. Through the co-operation
with Intactix International Inc., the world leader in Space Management, Pricer
has built a strong platform for future growth. Pricer offers integrational IT
solutions such as electronic price and information systems, application software
and consulting services to substantially improve consumer value and satisfaction
and increase the profitability of retailers and their suppliers. The Pricer
Group have subsidiaries in eleven countries. The share is listed on the O-list
of OM Stockholm Stock Exchange.
ABOUT JDA SOFTWARE GROUP, INC.
JDA Software Group, Inc. (NASDAQ:JDAS) is the leading global provider
of integrated retail software products and professional services with more than
740 clients in over 50 countries. Addressing the
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requirements of both brick and mortar and "click and mortar" companies, JDA's
state-of-the-art solutions include merchandising, planning, allocation, decision
support and financial systems; warehouse management and logistics systems;
point-of-sale and back-office in-store systems; and the industry's first
integrated commercial e-retail applications. Founded in 1985, JDA employs
approximately 1,100 associates operating from 21 offices worldwide. With
headquarters in Scottsdale, Arizona, the company has offices in major cities
throughout the United States as well as internationally in Canada, the United
Kingdom, France, Mexico, Brazil, Chile, Japan, Singapore, and Australia. For
more information, refer to JDA's Web site at http://www.jda.com.
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This press release contains forward-looking statements that are made in
reliance upon the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements include statements regarding
the expected timeframe for closing the acquisition, product development, product
integration, anticipated financial results and financial strategies,
cross-selling opportunities created by the transaction, and further penetration
of markets. Future events may involve risks and uncertainties, among which are
uncertainties related to the final development and market acceptance of proposed
new products, the ability to complete acquired products under development and
integrate new products into existing JDA products, the effectiveness of sales
and marketing programs to promote and distribute new products into new markets,
actions by competitors which could affect sales, pricing and profitability of
the Company's products, management of product transition, international sales,
the ability of the Company to attract and train the skilled personnel required
to implement its products, general market conditions and other risks detailed in
the prospectuses relating to the Company's recently completed public offering,
and which are and will be detailed from time to time in SEC reports filed by the
Company.
Acquisitions involve a number of special risks, including the inability
to obtain, or meet conditions imposed for, governmental approvals for the
acquisition, diversion of management's attention to the assimilation of the
operations and personnel of acquired businesses, costs related to the
acquisition and the integration of acquired businesses, products, technologies
and employees into the Company's business and product offerings. Achieving the
anticipated benefits of any acquisition will depend, in part, upon whether the
integration of the acquired business, products, technology, or employees is
accomplished in an efficient and effective manner, and there can be no assurance
that this will occur. The difficulties of such integration may be increased by
the necessity of coordinating geographically disparate organizations, the
complexity of the technologies being integrated, and the necessity of
integrating personnel with disparate business backgrounds and combining
different corporate cultures. The inability of management to successfully
integrate any acquisition the Company may pursue, and any related diversion of
management's attention, could have a material adverse effect on the business,
operating results and financial condition of the Company. Moreover, there can be
no assurance that any products acquired will gain acceptance in the Company's
markets, that the Company will be able to penetrate new markets successfully or
that the Company will obtain the anticipated or desired benefits of such
acquisitions. Any acquisition pursued or consummated by the Company could result
the Company incurring debt and contingent liabilities, amortization of goodwill
and other intangibles, purchased research and development expense, other
acquisition-related expenses and the loss of key employees, any of which items
could have a material adverse effect on the Company's business, operating
results and financial condition.