JDA acquires i2
15 August 2008If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
JDA is all set to acquire i2 Technologies for approximately USD $346 million - the huger for scale is relentless, it seems but whether or not it succeeds is a different matter altogether.
“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. 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,” commented Brewer. “We are confident in our abilities to execute and deliver on projected synergies creating significant incremental shareholder value.”
Not everyone is so optimistic about this deal though,
Bob Parker,vice president of Manufacturing Insights, said in an interview that the deal gives JDA added scale when going up against the duopoly of ERP titans SAP and Oracle, but he cautioned that Manufacturing Insights is not particularly optimistic that JDA, based on its experience with Manugistics, is going to invest significantly enough to satisfy the i2 install base.
“The i2 user base, which has been very loyal and i2 has delivered a lot of value to them over the years, were willing to be patient while i2 sorted things out, and I think there was an expectation that at the end of the process there needed to be a vision for new investment and things needed going forward,” said Parker. “But I am just not convinced that JDA is the right company. We have advised our clients to have are placement plan in place [if needed] that they can execute. It is nota panic situation, but the long-term plans of shippers need to look at alternatives from either their ERP provider or some of the specialists that serve the needs of their industry.”
Which way she blows - that we shall have to wait and see. T’is the season of mergers and acquisitions!!
Tags: Another acquisition in SCM space, i2 Technologies, JDA, ERP, TMS - Transportation Management
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