Company:Kinaxis
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| Type | Public |
|---|---|
| Industry | IT services |
| Founded | 1984 |
| Founders | Duncan Klett[1][2] and 2 others |
| Headquarters | 3199 Palladium Drive Ottawa, Ontario K2T 0N9 |
Area served | Worldwide |
Key people |
|
| Services | Supply Chain Management Sales and Operation Planning |
| Revenue | US$427 million (2023)[3] |
| Website | www |
Kinaxis is a supply chain management and sales and operation planning software company based in the Kanata district of Ottawa, Ontario, Canada. It is listed on the Toronto Stock Exchange and is a S&P/TSX Composite Component.
The company was founded in 1984 by Duncan Klett[4] and two others as Cadence Computer Corporation[5] and went public in June 2014.[6] In 2017, Kinaxis said that it expected to have 500 employees by the end of the year.[7]
Business
Kinaxis provides supply-chain-management software on a subscription basis, primarily to large, multinational companies. Customers include Ford, Cisco, Qualcomm, and Avaya.[8] They also provide related professional services to their customers. Contracts typically run for two to five years.[7] Their main product was called RapidResponse).[9] As of 2017, approximately 77% of revenue came from subscriptions, with the remainder from professional services.[10] Kinaxis also allows other companies, including Deloitte and Bain & Company, to install Kinaxis software for a percentage of the subscription revenues.[7] Kinaxis runs two data centers in South Korea. It has approximately 100 customers and about 5% of an estimated $4 billion market for software related to supply chain planning.[11][12] As of 2016, 85% of revenue was from US customers, 4% from Canadian customers, 8% from Asian customers, and the rest from European customers.[10] Competitors in the supply chain management software industry include SAP SE and JDA Software.[13] In 2017, a significant customer in Asia stopped paying, leading to a 3% reduction in revenue for the company.[7]
History
Kinaxis was founded in 1984 as Cadence Computer Corporation, to do supply-chain analysis of using custom mainframe computers, by three former Mitel engineers.[12] The name was later changed to Carp Systems International (after the nearby Carp River), then Enterprise Planning Systems.[7] In the mid 1990s, it changed its name to Webplan, and shifted from making hardware to providing software.
Recent history
In 2000, it led a venture round that raised $33 million.[12] In 2005, it renamed itself Kinaxis, and started focusing on selling software by subscription, as opposed to collecting a one-time fee.[12] In June 2014, it held an IPO on the Toronto Stock Exchange, raising a total of $100 million.[14] Since then, its market capitalization has increased to $1.7 billion, as of August 2017.[7] In 2022 they acquired MPO, a multi party orchestration platform connecting Supply Chain actors.
In December 2024, Kinaxis Inc. has rejected calls from activist investors to pursue a sale, emphasizing its commitment to creating long-term shareholder value. Daventry Group LP, holding a 1.3% stake in the company, issued a letter urging the board to explore a sale, while Irenic Capital Management LP echoed this sentiment in a separate statement. In response, Kinaxis hired Goldman Sachs for strategic advice and reaffirmed its focus on its current business plan.[15][16]
References
- ↑ "Kinaxis Inc." (in en). https://www.marketwatch.com/investing/stock/kxs?countrycode=ca.
- ↑ "KXSCF - Kinaxis Inc Company Profile - CNNMoney.com". https://money.cnn.com/quote/profile/profile.html?symb=KXSCF.
- ↑ Sean Silcoff (31 October 2024). "Kinaxis ‘has not closed the door to any path’ including sale, chair says". The Globe And Mail. https://www.theglobeandmail.com/business/article-kinaxis-has-not-closed-the-door-to-any-path-including-sale-chair-says/.
- ↑ "KXSCF - Kinaxis Inc Company Profile - CNNMoney.com". https://money.cnn.com/quote/profile/profile.html?symb=KXSCF.
- ↑ Klett, Duncan (21 January 2011). "A short history of Kinaxis. | The Signal: A blog by Kinaxis" (in en-US). https://blog.kinaxis.com/2011/01/a-short-history-of-kinaxis/.
- ↑ "Supply Chain Management and S&OP Solution Company - Kinaxis RapidResponse" (in en). https://www.kinaxis.com/en/about/supply-chain-management-solutions-company/#our-business.
- ↑ 7.0 7.1 7.2 7.3 7.4 7.5 Bagnall, James (August 13, 2017). "Kanata's Kinaxis takes a rare hit, but still 'punching giants in the nose'". The Ottawa Citizen. https://ottawacitizen.com/business/local-business/kanatas-kinaxis-takes-a-rare-hit-but-still-punching-giants-in-the-nose.
- ↑ "Kinaxis Customers Achieve Operations Performance Breakhroughs with RapidResponse" (in en). https://www.kinaxis.com/en/about/kinaxis-customers/.
- ↑ "How Kinaxis harnesses the cloud to tame global supply chains". Canadian Business. February 29, 2016. http://www.canadianbusiness.com/lists-and-rankings/most-innovative-companies/kinaxis/.
- ↑ 10.0 10.1 "Kinaxis 2016 Annual Report". https://www.kinaxis.com/en/about/investor-relations/financial-reports/.
- ↑ "Is Kinaxis a buying opportunity?". 16 December 2018. https://www.theglobeandmail.com/business/article-is-kinaxis-a-buying-opportunity/.
- ↑ 12.0 12.1 12.2 12.3 Silcoff, Sean. "Ottawa software firm Kinaxis is finally ready for its big moment". The Globe and Mail. https://www.theglobeandmail.com/report-on-business/ottawa-software-firm-kinaxis-is-finally-ready-for-its-big-moment/article23009765/.
- ↑ Paradza, Brian (November 8, 2017). "Kinaxis Inc. Shares Rise +14% in 2 Days". The Motley Fool. https://www.fool.ca/2017/11/08/kinaxis-inc-shares-rise-14-in-2-days-could-this-be-a-return-of-share-price-growth-momentum-to-the-stock/.
- ↑ "Kinaxis eyes acquisitions in wake of IPO". Ottawa Business Journal. June 12, 2014. http://www.obj.ca/article/kinaxis-eyes-acquisitions-wake-ipo.
- ↑ Mathieu Dion (18 September 2024). "Kinaxis Deflects Activists’ Pressure Seeking Potential Sale". Bloomberg. https://www.bloomberg.com/news/articles/2024-09-18/kinaxis-deflects-activists-pressure-seeking-potential-sale.
- ↑ Milana Vinn; Svea Herbst-Bayliss (9 September 2024). "Investment firm Daventry Group, in letter, calls on Kinaxis to sell itself". Reuters. https://www.reuters.com/business/investor-daventry-group-letter-calls-kinaxis-sell-itself-2024-09-09/.
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