JDA to Acquire i2"Again

JDA Software Group Inc. signs a definitive merger agreement to acquire i2 Technologies Inc., a global provider of supply chain solutions, for an enterprise value of approximately $396 million. The combination of the two companies is expected to create a global leader in the market for supply chain planning and optimization.

 

This isnt the first time that these companies have tried to join forces: i2 Technologies Inc. terminated its initial plan to merge with JDA Software Group Inc. in December 2008. Neither company cited a reason for the deal's termination, but economic uncertainty was suspected as a major factor.

 

"Our strategic rationale for acquiring i2 is even more compelling today than it was a year ago," says JDA Chief Executive Officer Hamish Brewer. "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."

 

"This is a powerful combination," says i2 Chairman, President and CEO Jackson L. Wilson, Jr. "Our customers will be supported by a team of supply chain professionals that is unmatched in the industry. Innovation will accelerate. Our expanded geographic footprint will enhance sales penetration and service delivery. This is the right transaction for our customers, partners and employees."

 

On a pro-forma trailing 12-month basis, the combined company has annual revenues of approximately $617 million, including more than $275 million of annual maintenance and recurring subscription fees.

 

While the Board of Directors of each company has approved the transaction, consummation of the transaction, which is expected to close in first quarter 2010, is subject to several closing conditions, including the approval and adoption of the merger agreement by i2's stockholders, expiration or termination of the applicable Hart-Scott-Rodino waiting periods and regulatory and other customary conditions.