The supply chain management universe is getting a bit smaller, with the recent announcement by Scottsdale, Ariz.-based JDA Software Group that it is taking over i2 Technologies of Dallas. The price is reportedly around $346m.
The acquisition is expected to create an entity with $635m in annual revenues and more than 6,000 customers, says Hamish Brewer, JDA chief executive officer. "By acquiring i2, we double our addressable market in manufacturing to include discrete manufacturing, complementing our current market leadership in process manufacturing and strengthening our retail and transportation management presence."
The planned takeover should seem logical to industry observers, in the view of Brewer. Noting that JDA bought Manugistics in 2006, Brewer said: "A major player in the supply chain space for more than 20 years, i2's world-class customers and employees are the perfect match for JDA. With the experience gained from the successful acquisition of Manugistics in 2006, the addition of i2 is comparatively an incremental and logical step for JDA."
Pallab Chatterjee, i2's CEO, had this to say: "In an industry that continues to consolidate, scale matters. In that regard, the combination of these two companies will create one of the world's strongest, best-of-breed software solution providers focused on the global supply chain. The combination of i2 and JDA increases the opportunity for expanded expertise, accelerated innovation and even greater value delivery through the joining of some of the best solutions and brightest minds in the industry."
The action also signals a stronger hand for JDA in retail and transportation management, as well as the addition of capability in discrete manufacturing. Such manufacturers build or assemble individual items like electronics or vehicles. JDA already has a strong product line for companies in process manufacturing, such as production of foods or chemicals.
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