SCM (supply chain management) vendor i2 Technologies said Thursday it has scrapped its merger deal with JDA Software Group.
JDA first announced its intent to acquire i2 for roughly US$346 million in August. I2's statement Thursday said JDA, which did not immediately respond to a request for comment, "has not provided consent to disclosure of any discussions between the parties."
However, there had been a series of signs the acquisition plan was in trouble. In November, JDA indicated it was having difficulty getting acceptable financing terms, and asked i2 to work out a lower price.
I2 said it will receive a $20 million termination fee from JDA. Had the acquisition gone through, the combined company would have had $635 million in annual revenues, JDA said in August.
It also would have created a large, independent option within the SCM (supply chain management ) market, which is populated by a array of small companies as well as giant vendors like SAP and Oracle.
Despite the spiked deal, i2 has "a strong financial position with significant cash balances," the company said in its statement.
I2's shares were down more than 20 percent in late trading Thursday, to about $6. JDA dropped about 8 percent, to roughly $11.50.