Customer relationship management (CRM) software vendor Siebel is rumored to be interested in purchasing supply chain management (SCM) specialist i2 Technologies, according to reports from the US.
Analysts said a merger could benefit both firms and their customers. The supply chain expertise of i2 would help Siebel move away from being a CRM specialist and towards provision of total e-business solutions, analysts said.
"It would make sense for such a takeover to occur," said Guy Chaigneau of analyst firm Frost & Sullivan. "It would better position Siebel in the high-end against the likes of Peoplesoft and Oracle."
The shares of i2 Technologies have lost 93 percent of their value this year, making the firm ripe for takeover by a cash-rich company such as Siebel.
Siebel and i2 customers would also benefit from a buy-out, according to commentators, including Tom Harwick, director of research group Giga.