JDA Software scoops up i2 for $346 million

JDA Software said Monday that it will acquire i2 Technologies for $346 million, or $14.86 a share, in its latest step in rolling up supply chain management software companies.

i2 makes supply chain management software and JDA specializes in planning an optimizing those applications. The end game: Create a supply chain management giant that can better compete with larger players such as SAP and Oracle in the applications market. JDA also acquired supply chain management software company Manugistics in 2006.

JDA CEO Hamish Brewer said in a statement that i2 will double its addressable market and bring in more manufacturing customers. JDA has been a leading player in the retail and transportation supply chain management. The company said it expects to save about $20 million a year due to the acquisition. Here's what the combined company will look like:

JDA's purchase price is a slight premium to i2's closing price of $14.16 on Friday.