i2 Technologies Inc. [
ITWO] on Thursday officially
announced its $346 milllion acquisition by JDA Software Group Inc. [
JDAS] has been terminated. The news comes roughly a month after JDA said it wanted to
negotiate a lower purchase price for the supply chain software maker.
i2 said JDA would not provide consent to disclose details of discussions between the two parties, but did say it expects to receive a $20 million termination fee within three business days.
With the JDA deal now behind it, i2 must now scramble to revitalize its business or find another buyer. Both may be difficult.
With the economy in a recession, i2 already is fighting an uphill battle to gain new business. But the failed merger adds to its problems. In a recent research note, JMP Securities analyst Patrick Walravens said that i2 and JDA had prepared for a very quick post-closing integration, and that some key i2 executives "had already cleaned out their offices and packed their bags." Other employees had already been informed about whether they were likely to have a continuing role post-merger.
Walravens said once the merger officially expires he would expect i2 to make additional cost cuts and restart the strategic sale process. i2 has previously disclosed it received two other offers to acquire the company in addition to JDA's. But any offer will be nowhere near JDA's $14.86 a share offer. Shares of i2 were trading down 15% at $6.56 early Thursday.
-- David ShabelmanSee Dec. 4 press release from i2 TechnologiesSee Nov. 6 post from Tech Confidential
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