JDA/i2 deal is called off
By Jeff Berman, Group News Editor -- Modern Materials Handling, 1/1/2009
Not long after JDA Software Group Inc., a provider of demand chain technology services, announced it planned to acquire i2 Technologies, a supply chain management software and services company, for approximately $346 million, it appears that the deal is off the table.
i2 announced it has officially terminated its Agreement and Plan of Merger with JDA, adding that it expected to receive a non-refundable $20 million termination fee from JDA.
On Nov. 6, i2 said its stockholders voted to approve the proposed merger with JDA, with the number of shares voted in favor of the merger representing more than 80% of the total shares outstanding and more than 99% of those voting shares in favor of the merger. But according to an i2 statement issued that day, i2 received a written proposal from JDA to amend—or lessen—the common share consideration in the merger agreement below the $14.86 per share price. And after reviewing this proposal, i2's board of directors deemed this proposal was “not in the best interests of i2's stockholders to pursue it.” This course of action left i2 to conclude that there was no real assurance the deal would be closed as stipulated in the merger agreement, according to i2—leading to this announcement about the deal being tabled.
If the deal had gone through as planned, it would have represented the largest acquisition for JDA since its May 2006 acquisition of Manugistics for $211 million. JDA officials said in August that this “combined company creates one of the world's strongest best-of-breed software solutions provider focused on the global supply chain for the manufacturing, wholesale distribution, retail and service industries” with a combined $635 million in annual revenues. Adding i2 to the mix would have given JDA a presence on the discrete manufacturing side of the fence.
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