April 23, 2021 at 04:01PM

Osaka, Japan-based Panasonic said on Friday (April 23) that it has agreed to acquire Blue Yonder, the end-to-end digital fulfillment platform provider. The deal, which PYMNTS reported last month, comes at a time when a surge in eCommerce has boosted demand for technology to smooth the process of moving goods from suppliers to retailers to customers.

According to a news release, Panasonic is expected to purchase 80 percent of shares ($5.6 billion) of Blue Yonder. When including the payment of outstanding debt, the cost increases to $7.1 billion. Existing shareholder New Mountain Capital will purchase the remaining shares, with funds managed by Blackstone.

With the rise of eCommerce and the proliferation of data in the wake of COVID-19, there has been a greater need for more intelligent and edge-aware software supply chains.

This acquisition builds on the two companies’ existing strategic relationship, which was established in January of 2019. In November of 2019, Panasonic and Blue Yonder formed a joint venture company in Japan. This past July, Panasonic took a 20 percent minority ownership and one seat on the board of directors at Blue Yonder.

Blue Yonder provides an end-to-end platform driven by artificial intelligence (AI) and machine learning (ML) that provides a “system of intelligence” for its retail, manufacturing and logistics customers. Its cloud-based Luminate platform aims to streamline the management of all aspects of the supply chain on a single platform.

Together, both companies aim to provide customers with a competitive advantage by driving “more automation and actionable, real-time business insights that reduce waste and improve operations,” the press release said.

For the year that ended Dec. 31, 2020, Blue Yonder revenue was over $1 billion, 67 percent of which was recurring revenue. During this period, SaaS annual revenue was $343 million and the SaaS net revenue retention rate was 120 percent.

Last month, PYMNTS reported that the purchase would mark the latest move in Panasonic’s transformation from a consumer products manufacturer, while underscoring the increased importance of supply chain management in day-to-day digital retailing and operations.

PYMNTS also reported that anything from groceries to vaccines, this past year has been a study in managing surging demand and the need to make fast decisions to streamless sales, manufacturing and distribution challenges that are happening on different continents.

Panasonic Agrees To Acquire Blue Yonder …

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