RedPrairie Is Acquired by New Mountain, Cancels IPO

RedPrairie Holding, Inc., a provider of warehouse management and other supply chain software solutions, has entered into a definitive agreement to be acquired by a fund affiliated with New Mountain Capital, L.L.C., a private equity firm. As a result of the acquisition, RedPrairie will no longer pursue an initial public offering, which had been announced last fall. Terms of the acquisition were not disclosed.

When asked why RedPrairie opted to be acquired rather than raise capital on its own terms through an IPO, marketing director Kari Janavitz told Logistics Today, “We felt fortunate to have both public and private financing options available to us. New Mountain Capital has a track record of accelerating the growth of their portfolio companies, strengthening their strategies, helping create more competitive differentiation – and ultimately, increasing the value of those companies. While capital would have been available to us as a public company, we believe New Mountain provides us the access to additional capital to accelerate our growth with more certainty.”

According to Janavitz, RedPrairie does not anticipate leadership, organization, or headcount changes at this point.

In a statement, Mike Mayoras, CEO of RedPrairie, noted, “We believe there are significant opportunities to provide more value to our customer base by expanding our product portfolio and entering new markets.”

“We aim to work closely with RedPrairie’s management team and help them accelerate their growth and strategic development, making them an even more valued partner to their customer base,” added Alok Singh, managing director of New Mountain Capital.

New Mountain Capital is a New York-based private equity firm investing for long-term capital appreciation through direct investment in growth equity transactions, leveraged acquisitions, and management buyouts. The firm currently manages private and public equity funds with approximately $8.5 billion in aggregate capital commitments.

RedPrairie delivers productivity solutions to help companies in three categories–workforce, inventory and transportation. RedPrairie provides these solutions to manufacturers, distributors and retailers looking to support business strategies that increase revenue, reduce costs and create competitive advantage. The company has more than 20 global offices and its solutions are installed at more than 34,000 customer sites in over 40 countries.