Apps & Software
JDA & i2: Supply Chain Consolidation Continues (JDAS, ITWO)
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An announcement came early this morning that JDA Software Group Inc. (NASDAQ: JDAS) was acquiring i2 Technologies Inc. (NASDAQ: ITWO). The companies have signed a definitive merger pact for approximately $346 million in cash. For the common stock, this translates to $14.86 per share in cash.
The two companies combined should have roughly $635 million in trailing12-month revenues, with about $300 million in recurring maintenance andsubscription service revenues. The companies believe they will save$20 million in annualized costs.
This merger is subject to i2 shareholder approval. Some holders willagree to this, but with a $10.01 to $18.80 trading range over the last52-weeks, there could be some holders who argue this undervalues thecompany. Either way, the consolidation among supply chain software andlogistics providers continues to occur.
Jon C. Ogg
August 11, 2008
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