JDA Software to Buy I2 for US$346 Million

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Consolidation hit the supply chain management space Monday, as JDA Software Group announced it is buying i2 Technologies for roughly US$346 million in cash.

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

It follows JDA's purchase of Manugistics in 2006 and will create a large independent option for SCM (supply chain management ) software over that offered by the likes of platform giants Oracle and SAP.

For JDA, the purchase also means a stronger hand in retail and transportation management, as well as the addition of capability in discrete manufacturing -- industries 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 Procter & Gamble and the Kohl's department store chain. I2 has deals with the likes of IBM and Bell Helicopter.

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

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