Manugistics buys Western Data

Manugistics Group Inc., a Rockville, Md., maker of business software, said May 6 it has acquired privately held Western Data Systems for an undisclosed amount in cash and stock.


Manugistics sells software that predicts efficient ways to complete a task and connects companies with their suppliers. Western Data Systems of Calabasas, Calif., adds the ability to make similar predictions for the aerospace and defense industry, the company said.


This is the fifth acquisition in the past two years for money-losing Manugistics, which, like many software companies, has been hit hard by the economic slump.


The deal closed last week. A Manugistics spokesman said he could not comment on whether there would be any layoffs, although all 150 Western Data Systems employees were re-hired. Manugistics also declined to say how much it paid for the firm, which reported $28 million in revenue last year.


Western Data Systems also brings a roster of aerospace clients, including Boeing Co. and Raytheon Co., and "deep expertise and proven technology," Greg Owens, Manugistics chairman and chief executive, said in a statement.


Over the past year, Manugistics has reported increasing losses, which it blamed on the economy and the market slump hitting all software firms. In October 2001, the company announced it would lay off 12 percent of its staff, or about 180 people.

For the fiscal year ended Feb. 28, Manugistics reported a loss of $115.2 million, compared with $28.1 million the previous year.


On the Nasdaq Stock Market May 6, Manugistics shares lost 39 cents, or about 3 percent, to close at $13.61.


(c) 2002 The Washington Post Company