i2 Technologies Inc. (NASDAQ: ITWO) is a supply chain management company which has been a takeout stock before. Turns out that is again. In a complicated transaction, JDA Software Group Inc. (NASDAQ: JDAS) will pay some $34 million all said and done in a deal that values the company at $18.00. This was also an unlikely transportation stock, despite it being a software play, which we picked earlier as one which could double. It has doubled and then some.
JDA’s purchase of i2 Technologies will help expansion in the supply chain management software segment, but will also bring new customers into the mix along with consulting services.
The deal is subject to approval from holders and will come from a complicated structure of shares, cash, and tentative financing, but some new investors may feel little love. It is about a 10% premium and the stock is up only 7% at $17.33. This may not be a done deal either. After lunch, it turns out that the Kendall Law Group said that it is “investigating the i2 Technologies takeover for shareholders.”
As noted in our transport stocks which would double:
i2 Technologies, Inc. (NASDAQ: ITWO) is a software company. But it is a supply chain management software company that is involved in the transportation of goods. It also serves aerospace, auto, chemicals, consumer, defense, energy, industrial, metals, pharma, technology and telecom compnaies. Ryder (see below) uses its system as well. We featured this stock in our “Special Situation Newsletter” in late-January at $6.17 because this one has actually been a busted merger. It has also been beaten up in the recession. But this could actually be acquired when things normalize as Oracle, Microsoft, SAP, H-P, and others start looking for deals in the space. Shares sit at $7.60 and a double would take it to $11.00 from lows. Its 52-week high is $14.60 and this was a $20+ stock just two years ago……
JON C. OGG
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