In the latest sign of consolidation in the supply chain software market, JDA Software Group, based in Scottsdale, Ariz., has said it will acquire i2 Technologies Inc. of Dallas for $346 million. JDA said that the combined companies would have some 6,000 customers generating annual revenues of about $635 million.

For the past year, rumors had circulated that i2 was up for sale. Founded in 1988, the software vendor had focused on the manufacturing sector, providing solutions for managing supply and demand. It offers applications in such areas as factory planning, transportation, demand management, and supply chain analytics.

The purchase of i2 marks the second major acquisition by JDA in two years. In 2006, JDA bought Manugistics, a competitor to i2 in the supply chain planning market. At present, JDA offers a suite of applications for supply chain execution, optimization, and planning, including those for visibility and transportation management.

JDA chief executive Hamish Brewer says that buying i2 will allow his company to double its presence in the area of discrete manufacturing, complement its leadership in process manufacturing, and strengthen its position in retail and transportation management.

Meanwhile, i2's chief executive acknowledged that the buyout made sense given the wave of consolidation sweeping the supply chain software industry. "In an industry that continues to consolidate, scale matters," said Dr. Pallab Chatterjee, i2's chief executive officer, in a statement announcing the deal. "In that regard, the combination of these two companies will create one of the world's strongest best-ofbreed software solution providers focused on the global supply chain."

The sale remains subject to regulatory approval and the signing of financial agreements.