Supply chain management vendor i2 Technologies has scrapped its merger deal with JDA Software.
JDA first announced its intent to acquire i2 for roughly $346 million (£235 million) in August. But a statement by I2 this week said JDA "has not provided consent to disclosure of any discussions between the parties”. JDA did not immediately respond to a request for comment.
However, there had been a series of signs the acquisition plan was in trouble. In November, JDA indicated it was having difficulty getting acceptable financing terms, and asked i2 to work out a lower price.
I2 said it will receive a $20 million termination fee from JDA. Had the acquisition gone through, the combined company would have had $635 million in annual revenues, JDA said in August.
It also would have created a large, independent option within the SCM market, which is populated by an array of small companies as well as giant vendors like SAP and Oracle.
Despite the spiked deal, i2 has "a strong financial position with significant cash balances," the company said in its statement.
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