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Karl Waldman

ProfitLogic was much more focused on doing one thing well in one industry and had a great leadership team. Manu had a much broader footprint in multiple industries and more turnover at the top. These things are significant negatives towards valuations unless you can make it work.


PS - The 5 years in my previous comment came from a friend at Oracle. However, integration is not the right term - rewrite is more accurate...)

Jason Busch


Nice financial and business analysis. The financial engineering behind this deal raises the question as to whether it is worth it to shareholders in the first place. But what most concerns me about it (from the supply chain market perspective) is the valuation. Or, perhaps MANU really had something to hide by selling out now. Consider how Profitlogic sold out to Oracle at a much higher multiple recently (the exact terms were not disclosed, but it was a similiar size deal). Remember guys, MANU has a nice little business in profit optimization (in addition to the core planning stuff) as well. Methinks something must be up here, or MANU got second-rate valuation advice.

Dennis Howlett

As I said at Jason Busch's place - there's always the fall back of GEAC if the deal doesn't owrk out.

Jason Wood


Make no mistake, neither SAP nor Oracle have five years to integrate any kind of code; advancements in code and architecture happen far more rapidly than that.

From a complexity issue, the MANU/JDA merger is puzzling. JDA has put a ton of time and effort into re-architecting its core suite into a .Net environment, something Manugistics is nowhere near. And from a product complexity standpoint, both JDA and Manugistics have a lot of overlapping functionality that will need to be supported and ultimately brought into one codestream. Not an easy task under the best of circumstances; much less when you don't have high margin license revenue flowing in to support the incremental development costs.

Karl Waldman

Oracle and SAP have the 5 + years it will take to fully integrate the 2 sets of software when they buy a company. JDA doesn't have that sort of time frame. Even if JDA cuts a huge amount of "costs", especially of if they cut costs-- those costs represent the skills they need to actually get the software to work at a client site and the industry knowledge needed to bring value to clients.


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