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Credit crunch stalls JDA's i2 deal

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.


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