Panasonic has announced it will acquire the supply chain management software company Blue Yonder at a valuation of $7.1 billion. Panasonic currently owns 20% of Blue Yonder’s shares, and it will now purchase the remaining 80%.
The overall valuation reflects a purchase price of $5.6 billion plus the assumption of about $1.5 billion of outstanding debt. Panasonic plans to finance the acquisition with a mix of cash and debt.
The acquisition, which signals a shift towards the software business, takes place as Panasonic has signaled it plans to move towards the model of a holding company, providing services to businesses in addition to its more well known technology products.
Panasonic is expecting that Blue Yonder’s machine learning technology will help it to gain an edge in the supply chain management space.