Thursday, December 04, 2008
It's now official. Following weeks of speculation, JDA has canceled the merger it announced back in August with i2.
In its press release, i2 said it expects to receive the non-refundable termination fee of $20 million from JDA within three business days.
JDA did not agree to disclose any information about why it canceled the deal. However, it did announce in November that it needed more time to secure financing, leading to speculation that the global credit crunch might force JDA to pull out.
This leaves i2 back in the same place it was before JDA extended its offer, looking for a way to rebuild its leadership in supply chain management, but now in a market that is much weaker than before. There is little danger for the short term, however. i2 has a strong cash position, with $220 million in cash and equivalents, as of September 30.
Larry Dignan has more analysis.
Update, Dec. 7. Adrian Gonzalez has a good analysis of what termination of the deal means to both JDA and i2.
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Pro-sellout shareholder of i2 elects second board member
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i2 seeks patent license shake-down fees
Former i2 CEO learns crime does not pay
i2 innovates with hosted vendor-managed inventory services
SAP: If you can't beat 'em, sue 'em
i2 kills off its SRM business
i2 fires 300, struggles to refocusby Frank Scavo, 12/04/2008 07:57:00 AM | permalink | e-mail this!
Reader Comments:Doesn't Sanjiv Sidhu still have like $600M? Sidhu should just buy i2 himself for the current $135M, make the i2 apps open source, get some major cslts like IBM to push i2 harder, & live off cslt services, & optional paid maintentance.
Sidhu was talking back circa 2001 about how he's passionate for unlocking "business value" for i2 customers, & thereby making the economy more efficient. Anyone recall "50B in customer value by 2005"? Sidhu should put his money where his mouth is.
If Sidhu won't do it, maybe 1 of the big cslt vendors like IBM or Accenture might.
Heck the China Govt could prolly cost-justify it with all of China's factories.