JDA strengthens market position with more than 6,000 global supply chain customers JDA Software Group announced that it has completed the acquisition of i2 Technologies in a transaction valued at approximately $604 million (£386m), or $19.79 (£12.65) per common share.
JDA strengthens market position with more than 6,000 global supply chain customers
JDA Software Group announced that it has completed the acquisition of i2 Technologies in a transaction valued at approximately $604 million (£386m), or $19.79 (£12.65) per common share.
By finalising the acquisition, JDA said it had solidified its position as one of the world’s leading providers of supply chain management and pricing solutions with the addition of i2’s 400-plus customers and robust, patented manufacturing, supply chain, retail and transportation solutions.
The acquisition brings together two market leaders, resulting in JDA’s ability to provide the most comprehensive, integrated supply chain offering, spanning from materials to the consumer, according to JDA.
Together, the combined company’s customer base also comprises more than 6,000 companies worldwide in the discrete and process manufacturing, wholesale distribution, transportation, retail and services industries.
Consolidating best-of-breed position
“With the close of the i2 acquisition, we’ve achieved an exciting milestone and an important and consistent next step in our strategy of becoming the foremost end-to-end supply chain solutions provider. JDA’s and i2’s combined resources, talent and track record create a platform for accelerated innovation, expanded service and support, and improved delivery of the results that matter most to our customers,” said JDA chief executive officer, Hamish Brewer.
“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. Backed by financial strength, an impressive customer base and our unmatched services and solutions offerings, we believe that the new JDA is the world’s most comprehensive supply chain software company.”
“With near-term synergies in operations, administrative functions and infrastructure costs expected to produce annual savings of approximately $20 million [£12.8m], we anticipate that the acquisition will significantly improve operational leverage and produce strong financial results going forward,” added Brewer.
Promising market response
The potential realised through the combination of these two supply chain leaders is already resonating in the marketplace, added the company.
“With its acquisition of i2, JDA is now the leading solutions provider focused on delivering world-class software and services across the global supply chain,” said Bill Bryan, director of supply chain and supply chain economics, at The Timken Company, a global manufacturer of highly engineered bearings, alloy steels and related components and assemblies. “JDA plus i2 is a powerful combination. As a long-time customer of both companies and an active member and chairman of the i2 User Group, I am looking forward to learning more about the substantial value that the new combined company can deliver to businesses worldwide.”
As part of the acquisition, former i2 executives Aditya Srivastava and Kelly Thomas will join JDA’s executive and senior management team. Srivastava is the combined company’s senior vice president and chief technology officer and Thomas is senior vice president of manufacturing. JDA also promoted Namita Dhallan to chief product officer and Salil Joshi to regional vice president of JDA’s Centre of Excellence in India.
