A message regarding JDA's pending acquisition of i2

Dear i2 Customer,

 

I want to take this opportunity to communicate with you directly regarding the signing of a definitive merger agreement for JDA Software Group, Inc. to acquire i2 Technologies, Inc., announced earlier today. i2 The Supply Chain Company<http://www.i2.com>

  

As you know, over the last year i2 has made significant progress, including:

 

*     Renewed attention to our competitive position around our software products

*     Intensified focus on growth areas such as channel management, sales and operations planning, transportation, retail planning, inventory management and our on-demand offering

*     Improved ERP co-existence through SAP NetWeaver certification

*     The addition of sales and presales positions across geographies

*     Ongoing protection and monetization of our valuable intellectual property portfolio

*     Capital structure improvements, including the repurchase of all of our outstanding debt

*     Continued profitability, remaining cash-flow positive with more than $190 million in cash

 

While pleased with this progress, we continued to evaluate ways to deliver greater value, solution innovation and support to our customers. We determined that the fastest way to achieve this was through a corporate transaction. After evaluating many options, our Board of Directors concluded that a transaction with JDA was the best way to achieve that objective.

 

The transaction offers many potential benefits to i2 customers. i2 and JDA share the same core values of delivering innovative, high-value solutions to our customers. Over the past 20 years, JDA has established a leading position in the retail industry. More recently, JDA has established a leading position in the process manufacturing and wholesale distribution industries, and has expanded its operations to encompass stakeholders across the global supply chain. JDA is dedicated to preserving the unique strengths and talents of i2 while creating a new, stronger company to support your needs.

 

Specifically, the transaction is expected to:

 

*     Create New Value for Customers. JDA and i2 already have over 130 common customers who have realized significant value through the use of our respective solutions. There are many opportunities to realize even greater value through the introduction of these unique solution and technology synergies into the balance of i2 and JDA’s combined 6,000-strong customer base.

 

*     Accelerate Solution Innovation. The combination of i2 and JDA will bring together the market’s largest and most experienced team of supply chain professionals capable of innovating in the fields of planning, optimization and execution for our customers. By combining the two companies, JDA will be able to create accelerated and highly differentiated innovation at a pace that will be hard for others to follow.

 

*     Expanded Services and Support. The combined companies will consist of the world’s largest and most experienced team of industry experts. Their expertise can be used to implement mission-critical process improvement with minimum risk and maximum return on investment for our customers. This includes implementation of solutions either in the traditional ‘behind the firewall’ model or as a service delivered with the highest quality, giving customers the choice of delivery options that best suit their specific business needs.

 

I know that you may have many questions. To read today’s announcement, please reference the press release located on our website at www.i2.com.

 

In addition, I urge you to attend the i2 Supply Chain Leader Forum next Tuesday, Nov. 10. This free, virtual event will feature panel discussions and presentations from i2 customers, thought leaders and industry analysts, as well as some terrific sessions on topics such as sustainability, risk management, on-demand solutions, global sourcing strategies and emerging trends in brand owner/retailer relationships. In addition, JDA CEO Hamish Brewer and Richard Hunter, a retired supply chain executive from Texas Instruments and Dell who is currently serving as a member of our Board of Directors, will share with you their thoughts on this pending transaction. You can register for the event at www.i2.com/sclforum.

 

Finally, before the two companies can combine, certain conditions such as stockholder and regulatory approvals must be obtained. JDA’s acquisition of i2 is expected to close in the first quarter of 2010. Until it closes, each company will continue to operate independently. Please know that i2ers worldwide are dedicated to delivering you world-class solutions and service now and throughout the transaction period.

 

We thank you for your continued support and look forward continuing a strong, long-lasting relationship with your company in the future.

 

Sincerely,

 

 

Jackson L. Wilson, Jr.

Chairman, President and CEO