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Published in Economic Development

Global supply chain software firm with Holland presence acquired in $1.7B deal

BY Tuesday, June 01, 2021 04:50pm

BluJay Solutions, a global provider of supply chain software with a major presence in Holland, has been sold to Austin, Texas-based E2open in a deal valued at around $1.7 billion.

The deal, which was announced last week, brings together two complementary software as a service (SaaS) providers. 

BluJay Solutions works with 50,000 network participants — including carriers, shippers, forwarders, suppliers and logistic service providers (LSP) — and will enhance E2open’s robust network of more than 220,000 network participants. The deal also helps expand E2open’s supply chain execution capabilities, namely with transportation management.

The deal is expected to close in the third quarter.

“We are very excited about joining forces with E2open in this highly strategic combination,” BlueJay Solutions CEO Andrew Kirkwood said in a statement. “Together, we will deliver a more powerful supply chain software platform built upon the world’s largest global trade network.”

E2open’s successful offer consisted of $760 million in cash and 72.4 million shares, giving BluJay shareholders a 22 percent stake in the combined company.

The combined companies are projected to bring in more than $550 million in pro forma revenue for fiscal year 2022 and more than $200 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

In May of 2016, Kewill, then a logistics and supply chain software company owned by Menlo Park, Calif.-based private equity firm Francisco Partners, purchased like-minded, Holland-based LeanLogistics. The following year, the combined companies rebranded to become BluJay Solutions. LeanLogistics’ former Holland headquarters then became one of the largest United States offices for BluJay Solutions.

It remains unclear how the merger with E2open may affect BluJay Solutions’ Holland operations. BluJay has not yet responded to a request for comment.

“BluJay is a transformative acquisition for E2open: it is strategic, it is financially compelling, and it further accelerates organic growth for the combined company,” Chinh Chu, chairman of the board at E2open, said in a statement. “It is a rare opportunity to combine two cloud-based, supply chain management software platforms with complementary networks.”

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