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Kinaxis

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Kinaxis Inc.
Company typePublic
IndustryIT services
Founded1984; 40 years ago (1984)
FoundersDuncan Klett[1][2] and 2 others
Headquarters3199 Palladium Drive
Ottawa, Ontario
K2T 0N9
Area served
Worldwide
Key people
  • John Sicard (President and CEO)
  • Paul Carreiro (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]
Websitewww.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.

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

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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

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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

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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

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  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. ^ a b c d e f 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. ^ a b "Kinaxis 2016 Annual Report". Kinaxis Inc.
  11. ^ "Is Kinaxis a buying opportunity?". Globe & Mail. 16 December 2018.
  12. ^ a b c d 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.
  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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