TMCnet News
JDA Software to buy i2 Technologies for USD396m(M&A Navigator Via Acquire Media NewsEdge) US business software maker JDA Software (NASDAQ:JDAS) has struck a deal to acquire supply chain management solutions provider i2 Technologies (NASDAQ:ITWO) for USD396m (EUR267m). The combination of the two companies will form a leader in the supply chain planning and optimisation, the companies said Thursday in a joint statement. In addition, the integration of i2 will expand JDA's ability to create new shareholder value, chief executive Hamish Brewer said, commenting on the deal. To fund the acquisition, JDA plans to raise USD275m of senior unsecured notes, it said. Later on, each i2 share will be converted into the right to receive USD12.70 in cash and 0.256 JDA shares. Alternatively, if the company fails to raise the necessary funds, every i2 share will be converted into the right to receive USD6 in cash and 0.580 JDA shares. JDA said it has received a fully underwritten commitment from Wells Fargo Foothill and Wells Fargo Securities to provide a USD120m term-loan and a USD20m revolving credit facility to finance the transaction. The company added it would use cash from financing sources and from the company's existing resources to meet its obligations under the agreement. The deal, which is expected to close in first quarter 2010, subject to regulatory clearance, was approved by both companies' boards of directors. Goldman Sachs (NYSE:GS) acted as financial advisor to JDA, while DLA Piper US LLP acted as JDA's legal counsel. Thomas Wiesel Partners served as financial advisor to i2 and Munsch Hardt Kopf & Harr PC acted as its legal advisor. ((Comments on this story may be sent to [email protected])) (c) 2009 M2 COMMUNICATIONS |