CIMdata PLM Industry Summary Online Archive
21 November 2005
Acquisitions
i2 Signs Definitive Agreement to Sell Content and Data Services Business; Company to Sell Electronics Industry Databases and Tools to IHS Inc. for $30 Million
i2 Technologies, Inc., announced that it has signed a definitive agreement to sell its Content and Data Services (CDS) business to IHS Inc., an international provider of critical information, decision support tools and services, for approximately $30 million. The Company is evaluating the accounting treatment of this transaction, and anticipates it will be treated as discontinued operations with prior period amounts reclassified to present the results of CDS separately. Additional details on the revenues and expenses of CDS will be provided when the transaction closes.
"The i2 Content and Data Services business is very well run and brings real value to its customers, but it did not play a role in our long term plans," said i2 Chief Executive Officer Michael McGrath. "We believe that the CDS customers, our shareholders and CDS employees will benefit from a more content-focused ownership, and that the divestiture will allow i2 to better focus on its core SCM business and goal of becoming a leader in next-generation supply chain management. The CDS customers are important to us and we are working together with IHS to ensure that the transition is smooth and that they have uninterrupted service."
"This transaction is another important step in our overall plan to improve our capital structure. The addition of $30 million in proceeds would effectively eliminate our overall debt to cash gap and strengthen i2's balance sheet," said i2 Chief Financial Officer, Michael Berry.
Electronics Database, TACTRAC Obsolescence Management solutions, 4DOnline solution suite including Parts Universe and BOM Optimizer, environmental compliance offerings and professional data services are part of the i2 CDS business that are included in the acquisition by IHS. Upon final closing, those products and services will be sold under the IHS brand by existing i2 CDS resellers, in addition to the worldwide IHS sales organization and dealer network.
The transaction, which is subject to certain customary closing conditions, is expected to close in December 2005.
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