Tokyo, Apr 23 (IANS): Panasonic on Friday announced it has acquired supply chain and AI software provider Blue Yonder, founded in 1985 and led by CEO Girish Rishi, in a $7.1 billion deal.

Panasonic said it will purchase the remaining 80 per cent of shares (for $5.6 billion) of Blue Yonder, adding to the 20 per cent which Panasonic acquired in July 2020.

With this, the Blue Yonder valuation has now touched $8.5 billion.

"By merging the two companies, we would like to realise a world where waste is autonomously eliminated from all supply chain operations and the cycle of sustainable improvement continues," said Panasonic CEO Yuki Kusumi.

This acquisition strengthens Panasonic's portfolio and accelerates the companies' shared Autonomous Supply Chain mission, empowering customers to optimise their supply chains using the combined power of AI/ML and IoT and edge devices.

For the year ended December 31, 2020, total revenue of Blue Yonder was over $1 billion, 67 per cent of which was recurring revenue.

The company counts more than 3,000 global customers including 65 of the top 100 retailers, 48 of the top manufacturers, and 9 of the top 10 global third-party logistics companies.

"This association came about as a result of three years of working together, first with Panasonic as a Blue Yonder customer and thereafter as joint venture partner. We have developed mutual trust and have a shared vision for an Autonomous Supply Chain," said Rishi.

The deal is intended to close by the second half of this fiscal year.

"The need for more intelligent, autonomous and edge-aware supply chains has been dramatically heightened by the Covid-19 pandemic, the rise of e-commerce and the proliferation of data. This acquisition strengthens Panasonic's portfolio and accelerates the companies' shared autonomous supply chain mission," the companies said.