SCM (supply chain management) software vendor i2 Technologies has scrapped its merger deal with JDA Software Group.
JDA first announced its intent to acquire i2 for roughly US$346 million (NZ$649 million) in August. A statement from I2's says JDA, which did not immediately respond to a request for comment, "has not provided consent to disclosure of any discussions between the parties".
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 US$20 million termination fee from JDA. Had the acquisition gone through, the combined company would have had US$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 a array of small companies as well as giant vendors such as SAP and Oracle.
Despite the spiked deal, i2 has "a strong financial position with significant cash balances", it says in its statement.
I2's shares were down more than 20% in late trading Thursday, to about US$6. JDA dropped about 8%, to roughly US$11.50.