JDA Software, a US-based software solution company for supply chain management, has entered into a definitive agreement with US-based i2 Technologies Inc, which has a large India presence.

i2 Technologies offers supply chain management solutions integrating data belonging to suppliers, customers, distributors, carriers, partners and contract manufacturers.

i2 Technologies is valued at around $396 million in this transaction. The company runs its India operation through i2 Technologies India Pvt Ltd in Bangalore. 

With this integration, JDA eyes an annual revenue of around $617 million, including over $275 million of annual maintenance and recurring subscription fees, said a joint company statement. JDA believes the acquisition will enhance its supply chain operation and complement other hosted services offerings.

“Integrating i2’s solutions and expertise will only expand our opportunity to build substantial new shareholder value over the coming years,” said Hamish Brewer, CEO of JDA. “The combination is expected to produce net annual cost savings of approximately $20 million.”

JDA has planned to finance the transaction through internal accruals and debt. In 2006, it has acquired Manugistics, a demand chain management solution company for $13.875.   

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