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JDA Software Group has agreed to acquire supply chain software provider i2 Technologies for about $346 million in cash. The deal brings JDA new technology including a web-enabled transportation management system for retailers.
JDA Software Group Inc., a provider of enterprise software applications for retailers, manufacturers and distributors, has agreed to acquire supply chain software provider i2 Technologies Inc. for about $346 million in cash. The deal brings JDA new technology including a web-enabled transportation management system for retailers.
The acquisition will create a company with annual revenue of about $635 million by combining JDA’s $378 million and i2’s $257 million for the 12 months ended June 30, 2008. I2 will bring more than 400 customers to JDA for a combined customer base of more than 6,000. I2 will also add 1,309 employees for a new workforce of more than 3,000.
John Fontanella, a supply chain technology analyst with research and advisory firm AMR Research Inc., says the acquisition could result in more off-the-shelf, web-enabled commercial software applications based on i2’s technology. I2 is known as a provider of software toolkits and consulting services to large companies that like to customize their software with their own IT staffs, while JDA is more rooted in commercial applications that retailers and other companies can install and implement relatively quickly, he says.
One challenge for JDA going forward, Fontanella adds, will be to determine how to offer what up to now have been competing transportation management systems from i2 and from the former Manugistics, which JDA acquired two years ago.
Things may go smoothly with the i2 acquisition if the aftermath of the Manugistics acquisition is an indication of the future course at JDA, Fontanella says. “When JDA bought Manugistics, a lot people were skeptical. Manugistics’ sales were down and its people were exhausted. But JDA did a good job of turning it around,” he says.