JDA Software to buy i2 for $346 million

August 11, 2008 (IDG News Service) Consolidation hit the supply chain management (SCM) market on Monday, as JDA Software Group Inc. announced that it is buying i2 Technologies Inc. for approximately $346 million in cash.

The acquisition, which is set to close in the fourth quarter, will create an entity with $635 million in annual revenue and more than 6,000 customers, JDA said.

It follows the company's purchase of Manugistics Group Inc. in 2006 and will create a large independent option for SCM software over that offered by the likes of giants Oracle Corp. and SAP AG.

For JDA, the purchase also means a stronger hand in the retail and transportation management industries, as well as the addition of capability in discrete manufacturing -- companies that build individual items such as automobiles or appliances. JDA already has offerings for process manufacturing, supporting the production of chemicals, foods or beverages, for example.

JDA's customers include The Procter & Gamble Co. and the Kohl's Corp. department store chain. I2 has deals with the likes of IBM and Bell Helicopter Textron Inc.

I2 recently received a $83.3 million payment from SAP as the result of an intellectual-property lawsuit. I2 had alleged that SAP was in violation of seven of its patents regarding areas such as tracking the sale of goods and coordinating separate factory planning systems. Under the settlement, the companies agreed to cross-license some patents.

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