JDA Software Group to Acquire i2 Technologies
• Acquisition establishes leading global provider of supply chain management software with more than 6,000 customers; Expands JDA’s addressable market to include Discrete Manufacturing and extends leadership in Transportation
• Combined revenues approximate $617 million (on a trailing twelve-month basis) with a broad, seamless portfolio of products and services for the Manufacturing, Wholesale Distribution, Retail and Services Industries
• Transaction expected to be accretive in 2010; $20 million of net, near-term financial synergies
• Transaction scheduled to close in first quarter 2010; structured to ensure a high degree of completion certainty
JDA® Software Group, Inc. (NASDAQ: JDAS) and i2 Technologies, Inc. (NASDAQ: ITWO) today announced the signing of a definitive merger agreement for JDA Software to acquire i2 Technologies, Inc., a leading global provider of supply chain solutions, for an enterprise value of approximately $396 million. The combination of the two companies creates a global leader in the market for supply chain planning and optimization. On a pro-forma trailing 12-month basis, the combined company has annual revenues of approximately $617 million, including over $275 million of annual maintenance and recurring subscription fees.
According to JDA Chief Executive Officer Hamish Brewer, the i2 acquisition will firmly establish JDA as a leading enterprise software company with a deep focus on supply chain management and a full complement of managed and hosted services offerings.
“Our strategic rationale for acquiring i2 is even more compelling today than it was a year ago. The challenges of the economic crisis have focused the market’s attention on the disciplines of supply chain planning and JDA has established a leading role in this active market.
Integrating i2’s solutions and expertise will only expand our opportunity to build substantial new shareholder value over the coming years.”
“Over time we have come to know the i2 business very well and based on our detailed diligence and proven track record for delivering value, I am confident that we can reliably unlock the sizable potential that exists within this company,” added Brewer.
“This is a powerful combination,” said i2 Chairman, President and CEO Jackson L. Wilson, Jr. “Our customers will be supported by a team of supply chain professionals that is unmatched in the industry. Innovation will accelerate. Our expanded geographic footprint will enhance sales penetration and service delivery. This is the right transaction for our customers, partners and employees.”
Snapshot of the Combined Company
By combining JDA and i2, the resulting company will have significantly improved operating leverage and a strong financial position. The near-term operating synergies resulting from this combination are expected to produce net annual cost savings of approximately $20 million. As a result of the pending acquisition, i2 has cancelled its previously announced conference call to discuss their third quarter 2009 financial results.
“JDA is using a balanced combination of cash on hand, debt financing and JDA common stock to finance the transaction. We intend to access the high-yield loan market to finance approximately $275 million of acquisition financing,” commented Pete Hathaway, JDA’s Executive Vice President and Chief Financial Officer. “The company’s pro-forma leverage is anticipated to be modest and the combined cash flow from operations will be significant.”
Terms of the Transaction
A primary goal of this transaction is to provide a high degree of completion certainty to the shareholders of both JDA and i2. With this in mind, the acquisition will be completed following one of the structures described below. JDA is pursuing the Intended Structure in order to provide the mix of consideration described below. Otherwise, JDA will complete the acquisition using the Alternative Structure.
About i2 Technologies, Inc. (Pre Acquisition)
Throughout its more than 20-year history of innovation and value delivery, i2 has dedicated itself to building successful customer partnerships. As a full-service supply chain company, i2 is uniquely positioned to help its clients achieve world-class business results through a combination of consulting, technology, and managed services. i2 solutions are pervasive in a wide cross-section of industries. Learn more at www.i2.com. i2 is a registered trademark of i2 Technologies US, Inc. and i2 Technologies, Inc.
About JDA Software Group, Inc. (Pre Acquisition)
JDA® Software Group, Inc. (NASDAQ: JDAS) is the world’s leading supply chain solutions provider, helping companies optimize operations and improve profitability. JDA drives business efficiency for its global customer base of more than 5,800 retailers, manufacturers, wholesaler-distributors and services industries companies through deep domain expertise and innovative solutions. JDA’s combination of unmatched services, together with its integrated yet modular solutions for merchandising, supply chain planning and execution and revenue management, leverage the strong heritage and knowledge capital of market leaders including Manugistics, E3, Intactix and Arthur. When supply chain results matter, companies turn to JDA. For more information about JDA, visit www.jda.com or contact us at info@jda.com or call +1.800.479.7382 / +1.480.308.3000.
To learn more about how JDA Software’s solutions help its customers effective navigate the recession recovery cycle, please visit www.jda.com.
For more information about JDA,
visit www.jda.com or contact us at info@jda.com or
call +1 800 479 7382 / +1 480 308 3000.
This press release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally accompanied by words such as “will,” “can,” “ensure,” “help,” “enable” and “expect” and other words with forward-looking connotations. In this press release, such forward-looking statements include, without limitation, suggestions that pursuing certain supply chain management strategies will lead to improved cash positions, business planning, market share, and brand loyalty. The occurrence of future events may involve a number of risks and uncertainties, including, but not limited to: (a) our solutions may not perform exactly as we anticipate; (b) there may be implementation and integration problems associated with our solutions; (c) certain supply chain management strategies may have execution, implementation or integration problems; and (d) other risks detailed from time to time in the “Risk Factors” section of our filings with the Securities and Exchange Commission. Additional information relating to the uncertainty affecting our business is contained in our filings with the SEC. As a result of these and other risks, actual results may differ materially from those predicted. JDA is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. “JDA” is a trademark or registered trademark of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name “JDA” is a trademark and/or property of JDA Software Group, Inc.
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, AZ 85260
Media Contact:
Annu Dwivedi
Adfactors PR
Email: annu.dwivedi@adfactorspr.com
Mobile: 9930143515
