Software company consolidation maintains hectic pace. I think I missed the 2021 announcement of Thoma Bravo acquiring QAD. I became familiar with QAD through a contact from GE who wound up there. However, I can’t believe it’s been 7 years since I became acquainted with the company, attended its annual conference, and spoke on a panel with a lively Q&A from the audience.
In this news, QAD has acquired Redzone. QAD is an ERP software and services provider. It has a significant MES-type offering. I remember visiting at least one plant using the software. (Hint: I don’t get enough plant visits any more. They are enlightening.)
Redzone, billed as the “Worlds #1 Connected Workforce Platform,” adds a component to the portfolio with mobile software solutions that can improve communication and collaboration with frontline workers.
This is the second acquisition completed by QAD in the last two months – in December, QAD acquired Livejourney, a provider of a real-time process mining and predictive modeling solution designed to discover, monitor and improve business processes.
Redzone received a growth equity investment from Summit Partners in 2020 and has continued to deliver strong growth over the last several years. In 2022, the Company defied a slowing SaaS market, accelerating bookings growth to 46 percent, adding over 100 new clients and over 200 new plants by meeting the critical needs of manufacturers with its suite of frontline Productivity, Compliance, Reliability and Learning applications. Global manufacturers that benefit from the technology include the likes of Nestle, Post Holdings and Tyson.
Labor productivity improvements directly impact efficiency. Productive and empowered employees increase the effective capacity of a manufacturing plant and accelerate time to productivity for new employees. This gives manufacturers the agility they need while also reducing the amount and impact of employee attrition.
Recent worker shortages have plagued manufacturers and are not going away – according to Deloitte, the labor shortfall is likely to reach 2.1 million and cost the economy $1 trillion by 2030. With the addition of Redzone, QAD now has a complete end-to-end solution for manufacturers to fully realize the potential of the Adaptive Enterprise from the shopfloor to the top floor, and from supplier to end customer.
Barclays served as financial advisor to Redzone, with Wilson Sonsini acting as legal counsel. Kirkland and Ellis LLP served as legal counsel to QAD and Thoma Bravo.