California investment firm acquires Red Prairie of Milwaukee

Waukesha, Wis. — RedPrairie, which makes software for supply chains, said on Tuesday it has been acquired by the California-based investment firm Francisco Partners.

While the exact terms of the deal are still unreleased, representatives from both companies said that RedPrairie has signed a definitive agreement to turn ownership of the company over to Francisco's general partners. The deal is expected to close in the next 30 to 60 days, but could be finalized by early May.

Ezra Perlman, a principal at Francisco Partners, said that while the firm had not made any business deals with RedPrairie prior to the agreement they decided to buy the company based on management strength. RedPrairie's team of leaders has been involved in the founding of several companies, including Nuclio Corporation, Intrepa LLC and Software Architects Inc.

"This is a validation of that team and their ability to grow a company," Perlman said of the deal.

RedPrairie spokesperson J.J. Berrall said the deal will be an opportunity for RedPrairie to expand its suite of operations, which revolve around supply technology such as radio frequency identification (RFID) and carrier portals for transportation and warehouse management. By drawing off Francisco Partners' funds of nearly $2.5 billion, the company will create a platform to branch out from its present offices through acquisition and growth. It will also improve the services offered to its current customers.

"There are only a couple ways to grow, and this offers us a way to grow in a way we are interested in," Berrall said. "Customers need lots of different tools and we'll keep growing in that way."

Although the company is changing hands, RedPrairie plans to continue operating the same way it always has. Perlman said that RedPrairie has a strong and diverse way of doing business, and Francisco Partners doesn't have any need to alter their process.

"This is a business-as-usual type of deal," Perlman said. "RedPrairie's previous owners were not involved in the day-to-day [operations], and that's how we are as well. We acquire companies and over time as these companies develop, we get bigger and better companies and look to sell them down the road, and make a return on our dollars"

"We've known about the company for a very long time," he added. "We follow the technology industry closely."