Supply chain and retail solutions provider JDA Software has entered a definitive agreement to acquire German retail AI solutions supplier Blue Yonder.

The deal is a part of JDA’s strategy to develop cognitive and connected solutions, allowing retailers to transform their business digitally.

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It will also increase the importance of connecting intelligent data and insights for more profitable and autonomous supply chain decisions, as well as optimised customer experiences.

JDA chief executive officer Girish Rishi said: “JDA’s end-to-end solution portfolio, coupled with Blue Yonder’s leading AI/ML capabilities, will enable customers to deliver more autonomous, profitable business decisions throughout their extended supply chains, unlocking the full business impact of intelligent data.”

“With JDA’s global scope and reach, we have a terrific opportunity to drive the use of our AI solutions throughout the world’s largest and most complex supply chains.”

The deal will also expand JDA’s offerings by integrating Blue Yonder’s data science capabilities across all areas of its SaaS solution roadmap, including retail and supply chain planning, execution and labour management.

JDA Luminate solutions will automate more profitable business decisions by using Blue Yonder’s cognitive capabilities.

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Blue Yonder CEO Uwe Weiss said: “With JDA’s global scope and reach, we have a terrific opportunity to drive the use of our AI solutions throughout the world’s largest and most complex supply chains and to support companies in driving AI innovation and automated decisions in complex supply chains.

“The Blue Yonder team is excited about accelerating and expanding our mission of creating best-in-class AI-based decisions to deliver outstanding customer experiences, increased revenue, and higher margins to companies around the world.”

The transaction is subject to competition agency approval and is scheduled to close in August.

Blue Yonder uses its artificial intelligence and machine learning (AI/ML) algorithms to enable retailers to automate complex decisions for increased profits and customer value.