JDA MOVES INTO DATA SYNC WITH QRS DEAL 2004-07-05 (1)

MICHAEL GARRY

SCOTTSDALE, Ariz. -- JDA Software Group's agreement last month to acquire QRS creates a company that adds QRS' capabilities as a data pool and data synchronization provider to JDA's wide-ranging retail applications.

QRS' data pool (product catalogue), one of the world's largest, consists of 100 million items, and is used by 4,500 companies, mostly in the general merchandise and apparel industries, said Liz Fetter, president and chief executive officer, QRS. Fetter said as part of JDA, the data pool is aiming to expand into the food retail and CPG industries.

QRS is also known as a provider of EDI (electronic data interchange) services, which Fetter said would also attempt to expand into food retail and CPG. QRS is already focused on the grocery sector with its Retail Intelligence Services, which collects in-store competitive pricing information.

Under JDA's all-stock acquisition of QRS, valued at about $100 million, QRS shareholders receive half a share of JDA common stock for each share of QRS common stock. The deal is expected to close in the third or fourth quarter of 2004. Projected annual revenue of the combined companies would exceed $340 million.

JDA is known in food retailing for a number of applications, including Intactix space management; E3 inventory management; VistaRetail electronic commerce; CPFR; advertising, marketing and promotion; trade fund and deal management; and fresh-item management.

The QRS name will be absorbed into JDA as one of its brands, said Peter Charness, senior vice president of marketing, JDA.

"The acquisition smartly expands JDA's internally focused demand chain optimization applications to now include supplier-centric collaborative planning," said AMR Alert, an online newsletter from AMR Research, Boston, written by research analysts Robert Garf and Scott Langdoc."

Fetter said QRS plans to certify its data pool with the emerging Global Data Synchronization Network, being organized by the Uniform Code Council and EAN International. "Last year we did a lot of work on the catalog to handle GTINs and language capabilities," she said

"All companies are struggling with global data synchronization except the top 100 suppliers and the top five retailers," said Charness. "QRS will be helpful to the food industry" in this area.