i2, Aspect to Merge in Largest Software Deal

BOSTON (03/13/2000) - A new claim to the largest software merger in history was made today -- this time in the hot business-to-business (B2B) market -- with the announcement that i2 Technologies Inc. is buying Aspect Development Inc. in a US$9.3 billion stock swap.

The previous largest software merger in history was the acquisition of Sterling Commerce Inc. by Computer Associates International Inc. for $4 billion, announced last month. [See "CA to Acquire Sterling Software for US$4 Billion," Feb. 14. ]I2 Technologies will acquire all of the outstanding stock and options of Aspect under terms of the deal. Each outstanding Aspect share will be exchanged at a .55 share ratio of i2 common stock, the companies said in a written statement.

Aspect shareholders will own about 18 percent of the merged company. I2 will issue or reserve about 44.9 million shares of common stock in the deal, with the valuation based on the company's March 10 closing price.

Aspect will be a subsidiary of i2 when the deal closes. Romesh Wadhwani, Aspect chairman and chief executive officer, will become vice chairman of i2 and a member of the board of directors.

Aspect, in Mountain View, California, makes collaborative software for B2B e-commerce and in-bound supply for companies and trading partners. I2, in Dallas, makes B2B software, including TradeMatrix, which enables companies to set up B2B and business-to-consumer portals.

I2 also announced that it is acquiring Supplybase Inc., which provides tools for Web-based product design and custom parts and assemblies sourcing. That deal also involves a stock swap with i2 issuing or reserving about 1.8 million shares of its common stock worth about $380 million for all the outstanding stock and stock options of Supplybase, based in San Francisco.

I2, in Dallas, can be reached at +1-469-357-1000 or http://www.i2.com/. Aspect, in Mountain View, can be reached at +1-408-325-2200 or http://www.aspect.com/.

Supplybase, in San Francisco, can be reached at +1-415-618-9900 or http://www.supplybase.com/.

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