Kinaxis

Last updated
Kinaxis Inc.
Company type Public
Industry IT services
Founded1984;41 years ago (1984)
FoundersDuncan Klett [1] [2] and 2 others
Headquarters3199 Palladium Drive
Ottawa, Ontario
K2T 0N9
Area served
Worldwide
Key people
  • Robert Courteau (Interim CEO)
  • Mark Morgan(Chief Revenue Officer)
  • Blaine Fitzgerald (Chief Financial Officer)
  • Anne G. Robinson (Chief Strategy Officer)
ServicesSupply Chain Management Sales and Operation Planning
RevenueUS$427 million (2023) [3]
Website www.kinaxis.com

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.

Contents

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.[ citation needed ]

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

  1. ↑ "Kinaxis Inc". www.marketwatch.com. Retrieved 2020-07-02.
  2. ↑ "KXSCF - Kinaxis Inc Company Profile - CNNMoney.com". money.cnn.com. Retrieved 2020-07-02.
  3. ↑ Sean Silcoff (31 October 2024). "Kinaxis 'has not closed the door to any path' including sale, chair says". The Globe And Mail.
  4. ↑ "KXSCF - Kinaxis Inc Company Profile - CNNMoney.com". money.cnn.com. Retrieved 2020-07-02.
  5. ↑ Klett, Duncan (21 January 2011). "A short history of Kinaxis. | The Signal: A blog by Kinaxis". blog.kinaxis.com. Retrieved 2017-11-30.
  6. ↑ "Supply Chain Management and S&OP Solution Company - Kinaxis RapidResponse". www.kinaxis.com. Retrieved 2017-11-30.
  7. 1 2 3 4 5 6 Bagnall, James (August 13, 2017). "Kanata's Kinaxis takes a rare hit, but still 'punching giants in the nose'". The Ottawa Citizen.
  8. ↑ "Kinaxis Customers Achieve Operations Performance Breakhroughs with RapidResponse". www.kinaxis.com. Retrieved 2017-11-30.
  9. ↑ [ citation needed ] "How Kinaxis harnesses the cloud to tame global supply chains". Canadian Business. February 29, 2016.
  10. 1 2 "Kinaxis 2016 Annual Report". Kinaxis Inc.
  11. ↑ "Is Kinaxis a buying opportunity?". Globe & Mail. 16 December 2018.
  12. 1 2 3 4 Silcoff, Sean. "Ottawa software firm Kinaxis is finally ready for its big moment". The Globe and Mail.
  13. ↑ Paradza, Brian (November 8, 2017). "Kinaxis Inc. Shares Rise +14% in 2 Days". The Motley Fool.
  14. ↑ "Kinaxis eyes acquisitions in wake of IPO". Ottawa Business Journal. June 12, 2014. Archived from the original on September 28, 2017. Retrieved December 1, 2017.
  15. ↑ Mathieu Dion (18 September 2024). "Kinaxis Deflects Activists' Pressure Seeking Potential Sale". Bloomberg.
  16. ↑ Milana Vinn; Svea Herbst-Bayliss (9 September 2024). "Investment firm Daventry Group, in letter, calls on Kinaxis to sell itself". Reuters.
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