SCDigest
Editorial Staff
| SCDigest Says: |
 The company will now have acquired the two dominant supply chain planning companies from the mid-1990s to the early 2000s in i2 and Manugistics, which JDA acquired in 2006.
|
JDA Software today announced plans - for the second time - to acquire supply chain software provider i2 Technologies.
The deal is valued at $396 million, including the assumption of debt.
In 2008, JDA and i2 announced a similar deal, one that at the time SCDigest called "the end of an era," given i2's once dominant role in supply chain technology. (See End of a Supply Chain Software Era.)
That deal fell apart before it closed, however, amid the financial crisis and resulting financing and valuation issues.
That led to a change in i2's top management and decent performance at the company over the past year - eventually bringing JDA back to the table. The company will now have acquired the two dominant supply chain planning companies from the mid-1990s to the early 2000s in i2 and Manugistics, which JDA acquired in 2006.
On making the announcement, JDA says that on a pro-forma trailing 12-month basis, the combined company has annual revenues of approximately $617 million, including over $275 million of annual maintenance and recurring subscription fees.
As noted at the time of the original deal, the move brings JDA expertise, solutions and customers in markets where it does not have much presence currently, such as high tech, 3PLs, automative, and other sectors.
“Our strategic rationale for acquiring i2 is even more compelling today than it was a year ago. 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," said JDA CEO Hamish Brewer.
We will have an update on this deal tomorrow.
Any reaction to this announcement? Are you surprised or not that the deal resurfaced? Let us know your thoughts at the Feedback button below.
|
