JDA Software Group has completed the acquisition of i2 Technologies, in a transaction valued at approximately $604m, or $19.79 per common share.
JDA said that the acquisition solidifies its position as a provider of supply chain management and pricing solutions with the addition of i2’s manufacturing, supply chain, retail and transportation offerings.
As part of the acquisition, former i2 executives Aditya Srivastava and Kelly Thomas will join JDA’s executive and senior management team. Mr Srivastava is the combined company’s senior vice president and chief technology officer and Mr Thomas is senior vice president of manufacturing. The company also promoted Namita Dhallan to chief product officer and Salil Joshi to regional vice president of JDA’s Centre of Excellence in India.
Under the terms of the agreement, each issued and outstanding share of i2’s common stock was converted into the right to receive $12.70 per share in cash and 0.2562 shares of JDA common stock with a combined value equal to $19.79 per share based on JDA’s closing stock price on Jan. 27, 2010.
JDA said that it used the proceeds from its previously issued $275m senior notes offering and a portion of the companies’ combined cash balances at closing to fund the cash obligations under the merger agreement and related transaction expenses.
Hamish Brewer, chief executive officer of JDA, said: “The addition of i2 doubles JDA’s market for advanced planning and optimisation solutions in all targeted manufacturing verticals, enabling us to address the complexities of discrete manufacturing, complement our leadership in process manufacturing, strengthen our presence in transportation and increase traction in Tier 1 and Tier 2 markets.
“With near-term synergies in operations, administrative functions and infrastructure costs expected to produce annual savings of approximately $20m, we anticipate that the acquisition will significantly improve operational leverage and produce strong financial results going forward.”