United States : JDA Software Group to Acquire i2 Technologies, Again.

Byline: shiv03

JDA Software Group, Inc. and i2 Technologies, Inc. today announced the signing of a definitive merger agreement for JDA Software to acquire i2 Technologies, Inc., a global provider of supply chain solutions, for an enterprise value of approximately $396 million. Sources, including the Wall Street Journal, have reported a purchase amount of $434.4 million, but that number doesn t reflect i2 s estimated cash balance at closing.

This merger acquisition isn t a surprise. The Wall Street Journal also noted that a deal between the two software companies fell apart last December whenas JDA needed more time secure funding to close the deal. The transaction signed today is structured to include a high degree of completion certainty, and even includes an alternative structure including a right for i2 common stockholders to receive a cash payout and .580x shares of JDA common stock.

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When complete, the combination of the two companies will create a huge global provider of supply chain planning and optimization solutions and will expand JDA s market to include discrete manufacturing and additional reach in transportation. The combined company will have more than 6,000 customers, and on a pro-forma trailing 12-month basis has annual revenues of approximately $617 million, including over $275 million of annual maintenance and recurring subscription fees.

JDA Chief Executive Officer Hamish Brewer believes the i2 acquisition will establish JDA as a leading enterprise software company with a deep focus on supply chain management and a full complement of managed and hosted services offerings.

Our strategic rationale for acquiring i2 is even more compelling today than it was a year ago, said Brewer in a statement. The challenges of the economic crisis have focused the market s attention on the disciplines of supply chain planning and JDA has established a leading role in this active market. Integrating i2 s solutions and expertise will only expand our opportunity to build substantial new shareholder value over the coming years.

i2 was born in the 1980s as an early innovator is supply-chain management automation software, but reached its zenith in the dot com bubble when its market capitalization topped $70 billion. It boasted clients such as Hershey s and Nike, but Nike s then-CEO Phil Knight loudly complained later of being oversold on the product. As a best-of-breed vendor, i2 also had to compete in the supply-chain space with SAP, and JDA for that matter, who were providing broader solutions. In 2006, JDA acquired another d

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