E2open to Buy BluJay Solutions in $1.7 Billion Supply-Chain Technology Deal
Supply-chain technology provider E2open Parent Holdings Inc. said it would buy logistics software company BluJay Solutions Ltd. in a transaction valued at about $1.7 billion, the latest deal in a sector drawing increased attention as companies cope with pandemic-driven shortages and shipping disruptions.
The stock-and-cash transaction announced Thursday would expand Austin, Texas-based E2open’s supply-chain services in areas including transportation management, while deepening the company’s international reach and broadening its data analytics offerings.
BluJay, which is based in Manchester, U.K., provides cloud-based supply-chain execution software and services, including platforms to manage freight transportation and global trade compliance. The company would add over-the-road trucking and airfreight to E2open’s global transportation network, along with technology tied to e-commerce operations such as last mile and parcel.
E2open would acquire BluJay for 72.4 million shares of Class A stock and about $760 million in cash, including the repayment of debt. Current BluJay shareholders would own about 22% of E2open after the deal closes. To finance the transaction, E2open secured $300 million through a PIPE, or private investment in public equity, and a $380 million add-on to an existing first-lien term loan. The deal has an enterprise value of about $1.7 billion, based on the price of E2open’s stock at market close on Tuesday.
The deal follows E2open’s debut as a public company earlier this year through a merger with a special-purpose acquisition company.
The combined business would have projected revenue of more than $550 million in fiscal 2022, the companies said. The transaction is expected to close in the third quarter.
Data-research group
Gartner Inc.
ranked E2open as the world’s ninth-largest provider in the supply-chain software market based on 2020 revenue, a category led by SAP SE, followed by
Oracle Corp.
E2open chairman
Chinh Chu
said the BluJay acquisition would accelerate growth for the combined company.
The logistics technology sector is seeing a flurry of deal activity as the coronavirus pandemic heightens interest in tools that help companies manage the flow of goods.
Supply-chain technology providers are weighing public stock offerings and buying up rival companies. BluJay said earlier this month that it would acquire rail transportation management system supplier Raven Logistics.
In a separate transaction, Chicago-based project44, which helps customers track the movement of shipments through supply-chain networks, said Thursday it had acquired ClearMetal, a San Francisco-based startup whose software uses artificial intelligence to help companies manage complex logistics operations.
Write to Jennifer Smith at jennifer.smith@wsj.com and Matt Grossman at matt.grossman@wsj.com
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