Merger Off, What Now for i2?

Since JDA and i2 announced their merger back in August, the stock market has plummeted and now five months later, the merger is off. JDA had already purchased the supply chain software company Manugistics back in July 2006, so a merger with i2 would have meant JDA being the third largest supplier of supply chain software, behind SAP and Oracle.

Unfortunately for JDA their offer to purchase i2 was based on a price of $346 million or $14.86 per share. At the time the merger was called off, i2’s share price was down to $7.70 and now has fallen lower to almost $6. i2 now has to contend with uncertain demand as the businesses put the brakes on supply chain spending.