Panasonic Enhances the Autonomous Supply Chain with the Acquisition of Blue Yonder

Panasonic Corporation announced today the acquisition of Blue Yonder, the leading end-to-end digital fulfillment platform provider. Panasonic will buy the remaining 80% of Blue Yonder's shares (for USD5.6 billion), contributing to the 20% it purchased in July 2020. The added investment, including debt repayment, amounts to USD7.1 billion, valuing Blue Yonder at USD8.5 billion. Panasonic and the existing shareholders New Mountain Capital and funds managed by Blackstone signed an agreement today to buy the outstanding shares of Blue Yonder.

Acquisition Accelerates Autonomous Supply ChainTM
The COVID-19 pandemic, the rise of e-commerce, and the proliferation of data have all heightened the need for more sophisticated, autonomous, and edge-aware supply chains. This acquisition expands Panasonic's portfolio and accelerates the companies' joint Autonomous Supply Chain goal, allowing consumers to simplify their supply chains by combining the ability of AI/ML, IoT, and edge devices. Companies will better use predictive business insights to pivot their operations in real-time by unifying supply, demand, and commerce solutions with IoT and edge technologies.

By combining Panasonic's strengths in industrial engineering, IoT, and edge technology with Blue Yonder's AI/ML-driven supply chain and commerce solutions, Blue Yonder's leading digital fulfillment platform gains significantly in customer value. Panasonic and Blue Yonder will work together to provide customers with a distinct competitive edge to achieve more automation and actionable, real-time business insights that minimize waste and improve operations while providing a more sustainable world.

This merger builds on the Panasonic/Blue Yonder strategic relationship, which began with a partnership in January 2019 and was followed by the establishment of a joint venture company in Japan in November 2019. Panasonic acquired a 20% controlling stake in Blue Yonder and a seat on the Board of Directors in July 2020. This acquisition completes the strategic relationship.

Blue Yonder: The Pioneer in AI/ML-Driven Supply Chain

Blue Yonder is a supply chain industry pioneer, offering an end-to-end platform driven by AI/ML that acts as a "system of intelligence" for its multinational distribution, manufacturing, and logistics clients. Its cloud-based LuminateTM platform manages all supply chain nodes through planning, execution, and commerce on a single centralized platform.

For the fiscal year ending December 31, 2020, overall business sales exceeded USD1 billion, with recurring revenue accounting for 67% of total revenue. SaaS annual recurring revenue was USD343 million as of December 31, 2020, with a net revenue retention rate of 120%.

About Panasonic
Panasonic Corporation is a global leader in the development of innovative technologies and solutions for a wide range of applications in consumer electronics, housing, automotive, and business-to-business (B2B). The company, which celebrated its 100th anniversary in 2018, has 528 subsidiaries and 72 affiliated entities around the world and reported consolidated net sales of 7.49 trillion yen for the fiscal year ending March 31, 2020. Committed to creating new value through collaborative innovation, the company uses its technology to make customers' lives and the environment a better place.

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