Supply chain software house
JDA's $346m acquisition
of a smaller competitor, i2, has
been stalled by the credit crunch.
The deal, which JDA intended to finance with debt, is being
renegotiated following the collapse of the stock and credit
markets. Hamish Brewer, JDA's CEO, has until 6 January 2009 to
agree new terms and conditions.
Brewer remains committed to the deal, which would add 6,000
customers to JDA and boost combined revenues to around $635m. This
would consolidate its number three slot in the supply chain
management market behind SAP and Oracle.
i2, which specialises in supply chain management software for
manufacturers of discrete products, would largely complete JDA's
application portfolio for retailers and manufacturers, Brewer told
Computer Weekly in an exclusive interview yesterday.
i2 would complement JDA's acquisition two years ago of
Manugustics,
which gave JDA an entry to manufacturers of continuous or flow
products, such as oil and energy, he said.
However, if the i2 deal falls through, JDA would continue to
look for further acquisitions, Brewer said. "But if market
conditions are not right for the i2 deal, then they are unlikely to
be right for another deal," he said.
He said JDA would look to fill gaps in the whole supply chain
management area, where he believed JDA dominated only one of four
sectors, namely demand forecasting, but has offerings in the
others, logistics, sales and operational planning and store
management.