NEW YORK (AP) -- JDA Software Group Inc., which makes inventory management software for retailers, said Thursday it has agreed to buy rival i2 Technologies Inc. for about $434 million.
JDA Software said Thursday the deal for the i2 Technologies will help it expand its business. I2 Technologies makes supply chain management software used by manufacturers as they deal with customers and suppliers. It also offers consulting and other services.
Under terms of the signed deal, JDA said it would pay a combination of cash and stock valued at $18 a share for i2 Technologies, which is based in Dallas.
That is a 9 percent premium over i2's closing price in Wednesday.
JDA, based in Scottsdale, Ariz., said the combined company will have a strong financial position, and the acquisition will lead to net annual cost savings of about $20 million.
JDA plans to pay for i2 using cash on hand, debt financing and shares. The deal is expected to close in the first quarter of 2010.
I2 Technologies shares rose 67 cents, or 4.1 percent, to $17.18 in morning trading. JDA Software shares edged up a penny to $20.71.