"Trade Service is not strategic to i2's core business and did not play a role in our long-term goals to be a leader in Next Generation Supply Chain Management. With this transaction complete we are further aligned around our core business and focus on delivering value to our customers and shareholders," said i2 Chief Executive Officer Michael McGrath.
TSC aggregates, manages, publishes and distributes standardized product and price information for the electrical, plumbing, industrial, HVAC/R, office products and automotive aftermarket parts industries -- all activities unrelated to i2's delivery of solutions for supply chain management. i2 and TSC had relatively no overlap in customers, technology or physical business location, allowing for an easier transition. In addition, the management team that has acquired TSC is the same management team that has been overseeing the business for the last several years. As a result of the transaction, TSC began operating under an independent ownership and management model effective July 1, 2005.
Today's announcement regarding TSC is the latest by i2 as it works to strengthen its balance sheet. Last week i2 announced that Dassault Systemes had acquired a competency center for the development of sourcing solutions for collaborative PLM from i2 for approximately $10 million. In addition, it was announced that Q Investments, one of i2's significant investors, had made a $15 million equity investment in i2, and that i2 had sold to Primavera the shares of Series A Convertible Preferred Stock of Primavera Software, Inc. held by i2 for $11 million in cash.
The Primavera, Dassault, Q Investments and TSC transactions, which combined provide $39 million in additional cash for i2, are parts of the Company's plan to improve its net debt position. More details of the plan will be discussed during the Company's second quarter earnings call in late July.
i2 is a leading provider of demand-driven supply chain solutions designed to enable business agility. i2's flexible solutions can synchronize demand and supply across an ever-changing global supply network. Nineteen of the AMR Research Top 25 Global Supply Chains belong to companies who are i2 customers. Seven of the Fortune global top 10 are also customers of i2. Founded in 1988 with a commitment to customer success and supply chain innovation, i2 has a history of delivering value by implementing solutions designed to provide a rapid return on investment. Learn more at www.i2.com
i2 is a registered trademark of i2 Technologies US, Inc. and i2 Technologies, Inc.
i2 Cautionary Language
This press release may contain forward-looking statements that involve risks and uncertainties, including forward-looking statements regarding i2's ability to execute upon its strategic plan, improve upon its financial stability or improve upon its net debt position. These forward-looking statements involve risks and uncertainties that may cause actual results to differ from those projected. For a discussion of factors which could impact i2's financial results and cause actual results to differ materially from those in forward-looking statements, please refer to i2's recent filings with the SEC, particularly the Quarterly Report on Form 10-Q filed May 10, 2005 and the Annual Report on Form 10-K filed March 16, 2005. i2 assumes no obligation to update the forward-looking information contained in this news release.
i2 Technologies, Inc. Corporate Communications Beth Elkin, 469-357-4225 Email Contact or Analyst and Investor Relations Mark Hillman, 617-551-2754 Email Contact