In a previous posting, in late 2008 (i2 Lives to See Another Day), we had written the following about the future for i2: "We see the following scenarios play out for i2:

    A. i2 to remain independent and become private
    B. i2 to ride out the recession and put themselves back into the market

The likelihood of any other buyer placing a proposal for i2 in the short term is very remote."

Now, it looks like one of the scenarios we had envisioned has come true: i2 and JDA both rode out the recession admirably, and JDA is now making its second attempt to acquire i2.

Again, we ask the question: what could be the rationale for doing so? To address this question, let us explore both the positive synergies as well as some of the challenge points.

This acquisition will result in the largest best-of-breed SCM player. It also creates a global leader with respect to areas such as TMS and S&OP, which are currently hot areas of interest for many companies. It also creates a complementary industry vertical approach in which i2's solutions can be sold in retail, and JDA's solutions in discrete industries.

This time around, the deal is structured in a more effective way not only for shareholders, but also for both companies, with more redundancy in case one of the two options fails. Even though the liquidity crunch we saw late last year has been mitigated to a large extent, the market conditions are still stormy and hence JDA's approach seems more pragmatic this time around.

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