Kinaxis
{{Short description|Software company in Canada}}
{{Infobox company
| name = Kinaxis Inc.
| logo = Kinaxis-Logo.svg
| logo_size = 280px
| type = Public
| traded_as = {{Unbulleted list|{{tsx|KXS}}|S&P/TSX Composite Component}}
| industry = IT services
| foundation = {{Start date and age|1984}}
| founders = Duncan Klett{{Cite web|title=Kinaxis Inc.|url=https://www.marketwatch.com/investing/stock/kxs?countrycode=ca|access-date=2020-07-02|website=www.marketwatch.com|language=en}}{{Cite web|title=KXSCF - Kinaxis Inc Company Profile - CNNMoney.com|url=https://money.cnn.com/quote/profile/profile.html?symb=KXSCF|access-date=2020-07-02|website=money.cnn.com}} and 2 others
| hq_location = 3199 Palladium Drive
Ottawa, Ontario
K2T 0N9
| area_served = Worldwide
| key_people = {{Unbulleted list|Robert Courteau {{small|(Interim CEO)}}|Mark Morgan{{Small|(Chief Revenue Officer)}}|Blaine Fitzgerald {{Small|(Chief Financial Officer)}}|Anne G. Robinson {{Small|(Chief Strategy Officer)}}}}
| services = Supply Chain Management
Sales and Operation Planning
| revenue = US$427 million (2023){{cite news |last1=Sean Silcoff |title=Kinaxis ‘has not closed the door to any path’ including sale, chair says |url=https://www.theglobeandmail.com/business/article-kinaxis-has-not-closed-the-door-to-any-path-including-sale-chair-says/ |work=The Globe And Mail |date=31 October 2024}}
| homepage = {{URL|https://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.
The company was founded in 1984 by Duncan Klett{{Cite web|title=KXSCF - Kinaxis Inc Company Profile - CNNMoney.com|url=https://money.cnn.com/quote/profile/profile.html?symb=KXSCF|access-date=2020-07-02|website=money.cnn.com}} and two others as Cadence Computer Corporation{{Cite web|url=https://blog.kinaxis.com/2011/01/a-short-history-of-kinaxis/|title=A short history of Kinaxis. {{!}} The Signal: A blog by Kinaxis|last=Klett|first=Duncan|website=blog.kinaxis.com|date=21 January 2011 |language=en-US|access-date=2017-11-30}} and went public in June 2014.{{Cite web|url=https://www.kinaxis.com/en/about/supply-chain-management-solutions-company/#our-business|title=Supply Chain Management and S&OP Solution Company - Kinaxis RapidResponse|website=www.kinaxis.com|language=en|access-date=2017-11-30}} In 2017, Kinaxis said that it expected to have 500 employees by the end of the year.{{Cite news|url=https://ottawacitizen.com/business/local-business/kanatas-kinaxis-takes-a-rare-hit-but-still-punching-giants-in-the-nose|title=Kanata's Kinaxis takes a rare hit, but still 'punching giants in the nose'|last=Bagnall|first=James|date=August 13, 2017|work=The Ottawa Citizen}}
Business
Kinaxis provides supply-chain-management software on a subscription basis, primarily to large, multinational companies. Customers include Ford, Cisco, Qualcomm, and Avaya.{{Cite web|url=https://www.kinaxis.com/en/about/kinaxis-customers/|title=Kinaxis Customers Achieve Operations Performance Breakhroughs with RapidResponse|website=www.kinaxis.com|language=en|access-date=2017-11-30}} They also provide related professional services to their customers. Contracts typically run for two to five years. Their main product was called RapidResponse).{{citation needed|date=October 2024}}{{Cite news|url=http://www.canadianbusiness.com/lists-and-rankings/most-innovative-companies/kinaxis/|title=How Kinaxis harnesses the cloud to tame global supply chains|date=February 29, 2016|work=Canadian Business}} As of 2017, approximately 77% of revenue came from subscriptions, with the remainder from professional services. Kinaxis also allows other companies, including Deloitte and Bain & Company, to install Kinaxis software for a percentage of the subscription revenues. 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.{{Cite news|url=https://www.theglobeandmail.com/business/article-is-kinaxis-a-buying-opportunity/|title=Is Kinaxis a buying opportunity?|website=Globe & Mail|date=16 December 2018 }} As of 2016, 85% of revenue was from US customers, 4% from Canadian customers, 8% from Asian customers, and the rest from European customers.{{Cite web|url=https://www.kinaxis.com/en/about/investor-relations/financial-reports/|title=Kinaxis 2016 Annual Report|website=Kinaxis Inc.}} Competitors in the supply chain management software industry include SAP SE and JDA Software.{{Cite news|url=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/|title=Kinaxis Inc. Shares Rise +14% in 2 Days|last=Paradza|first=Brian|date=November 8, 2017|work=The Motley Fool}} In 2017, a significant customer in Asia stopped paying, leading to a 3% reduction in revenue for the company.
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.{{Cite news|url=https://www.theglobeandmail.com/report-on-business/ottawa-software-firm-kinaxis-is-finally-ready-for-its-big-moment/article23009765/|title=Ottawa software firm Kinaxis is finally ready for its big moment|last=Silcoff|first=Sean|work=The Globe and Mail}} The name was later changed to Carp Systems International (after the nearby Carp River), then Enterprise Planning Systems. In the mid 1990s, it changed its name to Webplan, and shifted from making hardware to providing software.{{Citation needed|date=May 2019}}
= Recent history =
In 2000, it led a venture round that raised $33 million. In 2005, it renamed itself Kinaxis, and started focusing on selling software by subscription, as opposed to collecting a one-time fee. In June 2014, it held an IPO on the Toronto Stock Exchange, raising a total of $100 million.{{Cite news|url=http://www.obj.ca/article/kinaxis-eyes-acquisitions-wake-ipo|title=Kinaxis eyes acquisitions in wake of IPO|date=June 12, 2014|work=Ottawa Business Journal}} Since then, its market capitalization has increased to $1.7 billion, as of August 2017. 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.{{cite news |last1=Mathieu Dion |title=Kinaxis Deflects Activists’ Pressure Seeking Potential Sale |url=https://www.bloomberg.com/news/articles/2024-09-18/kinaxis-deflects-activists-pressure-seeking-potential-sale |work=Bloomberg |date=18 September 2024}}{{cite news |author1=Milana Vinn |author2=Svea Herbst-Bayliss |title=Investment firm Daventry Group, in letter, calls on Kinaxis to sell itself |url=https://www.reuters.com/business/investor-daventry-group-letter-calls-kinaxis-sell-itself-2024-09-09/ |work=Reuters |date=9 September 2024}}
References
{{Reflist}}
Category:Online companies of Canada
Category:Companies listed on the Toronto Stock Exchange
Category:Companies based in Ottawa
Category:Supply chain software companies
Category:Information technology companies of Canada
Category:Canadian companies established in 1984
Category:Software companies of Canada