Additionally, the Japanese group will assume Blue Yonder’s debt of $1.5bn
Panasonic has signed a deal worth $5.6bn to acquire the remaining 80% stake in Blue Yonder, a US-based end-to-end, digital fulfilment platform provider.
After including Blue Yonder’s debt, the consideration for the stake comes to $7.1bn.
The sellers of the stake are existing shareholders – New Mountain Capital and funds managed by Blackstone.
The deal values Blue Yonder at $8.5bn.
Panasonic had acquired a 20% stake in the supply chain software company at an enterprise value of $5.5bn in July 2020.
Blue Yonder is said to help manufacturers, retailers, and logistics providers to predict, pivot, and address customer demand through an intelligent, end-to-end platform called Luminate.
The cloud-based platform is claimed to manage all nodes of the supply chain seamlessly across planning, execution, and commerce on one unified platform.
In 2020, Blue Yonder reported revenue of more than $1bn.
Panasonic said that the takeover of the company will bolster its portfolio and expedite the shared autonomous supply chain mission of the two firms. It will empower customers to streamline their supply chains by leveraging the combined power of artificial intelligence/machine learning (AI/ML) and internet of things (IoT), and edge devices.
Furthermore, the Japanese group said that the combination of its strength in industrial engineering, IoT, and edge technologies with the AI/ML-driven supply chain and commerce solutions of Blue Yonder significantly intensifies the customer value of the latter’s digital fulfilment platform.
Panasonic and Blue Yonder are also expected to help customers in driving more automation and actionable, real-time business insights for cutting down waste and in enhancing operations.
Panasonic CEO Yuki Kusumi said: “By merging the two companies, we would like to realize a world where waste is autonomously eliminated from all supply chain operations and the cycle of sustainable improvement continues.
“There are still many such losses and stagnation in supply chain operations, so through the drastic reduction of wasted labour and resources, we would like to provide better ways of working, and contribute to customers’ management reform and also to the realization of a sustainable society by carefully using limited global resources.”
The two firms had also created a joint venture in Japan in April 2019.
Blue Yonder CEO Girish Rishi said: “This association came about as a result of three years of working together, first with Panasonic as a Blue Yonder customer and thereafter as joint venture partner.
“We have developed mutual trust and have a shared vision for an Autonomous Supply Chain that delivers a better life and a better world. As the essential platform for essential times, we are relentlessly focused in fulfilling our customers’ potential.”
The deal, which is subject to customary regulatory approvals, is expected to close by the second half of this fiscal year.