We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » it's called RedPrairie, but investors are seeing green
newsworthy

it's called RedPrairie, but investors are seeing green

June 1, 2005
DC Velocity Staff
No Comments

Private equity investors Advent International and Vestar Equity Partners have cashed out of RedPrairie. But there's no cause for alarm. A new financial partner has arrived to usher it to the next level. Private equity firm Francisco Partners announced it was acquiring RedPrairie in April.

Word on the street is that RedPrairie, which markets warehouse management systems (WMS), will use the funding to acquire other software makers in a bid to challenge industry leader Manhattan Associates. But first it will have to close a fairly wide gap. RedPrairie's estimated revenue for 2004 was $122 million, and estimates for this year run in the range of $140 million. By contrast, publicly traded Manhattan Associates, the largest WMS provider, reported sales of $215 million in 2004.

But that doesn't mean RedPrairie will only be looking to acquire other WMS providers. In fact, that would be a mistake, says Beth Enslow, vice president of enterprise research at Aberdeen Group. RedPrairie's core WMS market is becoming a commodity market, she says. These days, most companies seeking to automate warehouse management simply buy a module from their ERP systems vendors, Enslow explains, limiting the pool of prospective customers.

"I think the biggest challenge for RedPrairie is going to be putting together a growth path that shows not only that they can grow in the core warehouse space," says Enslow, "but that they can grow revenue in extended logistics processes." She expects that RedPrairie will concentrate on acquiring companies that specialize in mobile resource management, transportation, and other "blue collar" logistics and inventory optimization segments.

In the meantime, Enslow believes RedPrairie's customers have nothing to worry about. "Customers should view this as a non-disruptive event," she says. "Francisco Partners is an equity company, not a software vendor, so expect little to none of the disruption to products, technology roadmaps, staff, support, and so on that occur when a software vendor acquires a company."

Technology Warehousing (WMS & WCS & WES)
  • Related Articles

    U.S. Fashion Shoppers Are Out-Returning European Counterparts - But Will Pay Extra for Green Options

    Report: Companies are focused on sustainability, but lack progress

    it's not called the dismal science for nothing

Recent Articles by DC Velocity Staff

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

Warehouse robots drive change in automotive plant

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Big and bulky last-mile delivery segment set for hot growth

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing