Scottsdale's AI logistics Blue Yonder to be bought by Panasonic in $7.1 billion deal

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Scottsdale's AI logistics Blue Yonder to be bought by Panasonic in $7.1 billion deal

In what could be viewed as Panasonic’s largest takeover deal in decades, the Japanese multinational electronics company said in a statement on Friday that it would purchase the Scottsdale, Arizona-headquartered American supply-chain software company, Blue Yonder, in a deal $7.1 billion buyout deal, largely in a bid to tap an upscaled demand from companies as the pandemic’s fiscal consequences appear to be taunting the Japanese electronics giants’ resilience against a broad-based supply chain disruption.

Aside from that, Panasonic Corp., the century-old Japanese electronics conglomerate, was quoted saying in a press release that the Kadoma, Osaka-based Japanese multinational manufacturing company, which had purchased a 20 per cent stake in Blue Yonder for a stark upsum of $797 million last year, would acquire the rest of Blue Yonder shares which it did not already own from deep-pocket shareholders likes of Blackstone Group Inc., the world’s largest alternate asset manager, alongside New Mountain Capital.

Panasonic sets to take over US-based software company Blue Yonder

On top of that, according to the financial terms of the buyout deal, Panasonic had claimed to have reached an acquisition deal with the existing shareholders of Blue Yonder, which in effect had valued the US-based supply chain software company at $8.5 billion including debt.

Meanwhile, adding that the Japanese manufacturing conglomerate would finance half of the deal in cashes and the remaining with a bridge loan that would be covered by subordinated bonds alongside other hybrid refinancing measures, Panasonic said in a statement following the announcement, “The need for more intelligent, autonomous and edge-aware supply chains has been dramatically heightened by the COVID-19 pandemic.

Founded back in the 1985s, Blue Yonder, which counts heavy-weight companies such as Walmart, Starbucks and Unilever among its customer, emerges as a top-tier destination for supply chain management, retail and manufacturing planning alongside store operations and category managements over recent years under leadership of Chief Executive Girish Rishi.