Honeywell International Inc. is in the midst of a major strategic shift. The industrial giant is scaling back operations in historically core markets such as aerospace and chemicals while aggressively expanding its IT business, an effort that is now reportedly set to kick into high gear. An anonymous insider told the Wall Street Journal over the weekend that the company is close to acquiring supply chain automation provider JDA Software Group Inc. for about $3 billion.

The tipster further claimed that this sum includes the roughly $2 million in outstanding debt owed by JDA, which is consistent with what a separate group of insiders told Reuters when the buyout rumors first started last week. The company’s growing reliance on creditors is presumably one of the main reasons why its owner, private equity firm Mountain Capital LLC, is looking to sell. A $3 billion bid from Honeywell would provide a handsome return on the $1.9 billion that it spent to acquire the supply chain automation provider in 2012.

The industrial giant, meanwhile, could harness JDA’s extensive product line and 4,300-strong workforce to gain a lot of new ground in the software market. The latter outfit claims that its solutions are used by thousands of organizations around the world including The Walgreens Co., Advance Auto Parts Inc. and other big retail brands. It’s also popular in segments like the manufacturing sector where Honeywell already has a considerable presence.

If the acquisition rumors prove true, the company will presumably move JDA under the same umbrella as Intelligrated Inc., a warehouse and logistics automation provider that it picked up last month for $1.5 billion. Honeywell is on track to become an IT powerful at the current rate, but the road ahead won’t be easy. Other industrial giants such as General Electric Co. and Hitachi Ltd. are also aggressively expanding their software businesses in a bid to help customers automate operations and make better use of machine-generated data.

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