JDA Software is to acquire rival Manugistics for around $211m (£124m) in cash to create a $390m-turnover-a-year supply-chain software company.
Loss-making Manugustics was $4.6m in the red for the third quarter, although it had predicted a return to profitability in the fourth quarter.
The combined company will have a total of 5,500 customers, according to JDA.
Hamish Brewer, JDA chief executive officer, said, “Only JDA can bring the product, market and industry leadership proposition that will position Manugistics for a new era of growth.”
JDA said the combined company would deliver between $25m and $30m in operational savings a year within 12 months of the deal closing.
JDA has not said whether some of these savings will be dependent on job cuts. JDA currently employs more than 1,000 staff, and Manugistics has almost 800 employees.
The acquisition is expected to be completed during the current quarter.