E2open to Combine With BluJay Solutions, a Leading Cloud-Based, Logistics Execution Platform
E2open Parent Holdings, Inc., a leading network-based provider of a 100% cloud-based, mission-critical, end-to-end supply chain management platform, announced that it will acquire BluJay Solutions, a leading cloud-based, logistics execution platform. Based on the price of E2open’s Class A Common Stock at May 25, 2021 market close, the stock and cash transaction is valued at approximately $1.7 billion.
BluJay is an integrated SaaS platform with comprehensive solutions for Shippers, Logistics Service Providers (LSPs) and Freight Forwarders. BluJay provides a robust suite of logistics execution applications and a broad trade network of over 50k participants serving over 5,700 global customers. With an expansive ecosystem of suppliers, carriers and network partners, BluJay enables differentiated connectivity across all supply chain participants, resulting in industry leading visibility across its broad network. BluJay’s combination of data, network and applications plays a mission-critical role in logistics and distribution supply chains and drives significant ROI for customers.
“I am thrilled to welcome the exceptional team and great customers of BluJay Solutions to E2open,” said Michael Farlekas, president and chief executive officer at E2open. “Combining E2open’s end-to-end platform and large trading partner network with BluJay’s leading logistics execution software, we will provide more robust capabilities and value to our customers, unlocking a greater opportunity to accelerate our long-term growth. This transformative acquisition advances our strategy and is consistent with our approach to M&A over the last 5 years.”
“We are very excited about joining forces with E2open in this highly strategic combination,” said Andrew Kirkwood, chief executive officer at BluJay Solutions. “Together, we will deliver a more powerful supply chain software platform built upon the world’s largest global trade network.”
Compelling strategic benefits to accelerate future organic growth
- Creates leading, independent SaaS-based supply chain platform spanning supply chain planning and execution: The acquisition of BluJay will materially expand E2open’s supply chain execution capabilities, especially in transportation management. Additionally, BluJay brings a highly complementary global trade management platform that encompasses customs declaration and filing to E2open’s strong capabilities in compliance and tariffs. The acquisition further adds key direct-to-consumer offerings including last mile, parcel and dropship commerce.
- Increases global reach and TAM: BluJay’s truly global footprint, with customers and offices across EMEA and APAC, will strengthen E2open’s global reach and ability to penetrate emerging markets with international leadership based in the UK. E2open’s primarily enterprise customer base will also add a strong presence in the upper mid-market with BluJay, adding more than $9 billion to an already strong TAM opportunity in North America and Europe.
- Complementary go-to-market strengths: BluJay’s go-to-market strategy emphasizes new client acquisition. E2open’s go-to-market has historically focused on cross-selling and upselling products to existing customers. The combination leverages each company’s respective strengths to broaden the pool of cross-sell opportunities and significantly accelerates E2open’s strategic new logo initiative. Moreover, BluJay’s TMS solution provides E2open with another significant tip of the spear product to accelerate new logo growth for the combined company.
- Enhances E2open’s leading supply chain networks: E2open operates a leading trade network with over 220k network participants. BluJay augments E2open’s network to include over-the-road trucking and complementary air transportation, enabling complete visibility from truckloads to intermodal shipments. Further, BluJay’s global transportation network adds 50k network participants, $40 billion in annual commerce spend and 1.9 billion annual transactions to E2open’s existing network.
- Broadens E2open’s analytics offerings: E2open’s network and data will be expanded by BluJay’s trade network with over 50k network participants, enabling greater data collection and insights for customers across freight and visibility for better business decision-making. This will substantially increase the monetization opportunity that E2open already has today for its data.
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Financially compelling transaction
- Increased scale as the pro forma company expects to deliver annualized pro forma revenue of over $550 million and adjusted EBITDA greater than $200 million post completion of the combination and the realization of acquisition-related cost synergies
- The combined company will deliver pro forma organic revenue growth greater than 10% in fiscal year 2023
- E2open expects mid-teens FCF per share accretion on a pro forma basis over the next 12 months
- $20 million of projected run-rate cost savings, reflecting 5% of combined company costs
- Accelerates organic revenue growth and higher net retention post combination due to significant cross-sell opportunities
“BluJay is a transformative acquisition for E2open: it is strategic, it is financially compelling, and it further accelerates organic growth for the combined company,” said Chinh Chu, Chairman of the Board at E2open. “It is a rare opportunity to combine two cloud-based, supply chain management software platforms with complementary networks.”
“The combination of E2open and BluJay is a natural next step for both businesses, creating a combined company with leading capabilities from planning through execution,” said Deep Shah, Co-President at Francisco Partners. “The fit between our respective product offerings, shared vision for the future of the industry, and alignment on core values makes for a combined future that we are very excited to be a part of through our substantial equity consideration in the combination.”
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