Panasonic is reportedly buying U.S.-based startup Blue Yonder for $6.5 billion as its forays into supply chain Software

We live in a changing world. Technology is changing everything around us. Today, the 102-year-old Japanese electronics company Panasonic is making a foray into the software and the supply chain business. The company is reportedly acquiring U.S.-based company Blue Yonder for $6.45 billion (or 700 billion yen).

While Nikkei was first to report the acquisition, Panasonic refuted the report about the acquisition. The company spokesperson told Reuters: “This is not something that has been announced by our company. It is not true that it is something we have decided.”

Meanwhile, the move could be a timely one for Panasonic. The magnifying glass has never been over supply chain management more so than it is now, with a global pandemic and an ongoing semiconductor shortage placing stress on how important it is to keep global trade routes and corporate supply chains running like well-oiled machines.

Founded in 2008 by Michael Feindt, Blue Yonder uses machine learning to help companies manage supply chains that connect factories to warehouses and retailers. Blue Yonder’s clients include companies like Walmart, Starbucks, Unilever, among others.

The acquisition would bolster Panasonic’s supply chain management services as the COVID-19 pandemic focuses the attention of companies on their resilience to disruption, Reuters notes.

It not only marks one of the most decisive moves by Panasonic in years, but it’s the company’s largest acquisition since 2011, according to Reuters. Panasonic already had a 20% stake in Blue Yonder which it acquired for 86 billion yen last year.

The acquisition is in the “final stages” and Panasonic is seeking to acquire the rest of the company from major shareholders, which include Blackstone Group.