I2 to buy Aspect Development in $9.3 billion deal

NEW YORK, MAR 13: Software maker I2 Technologies Inc plans to buy Aspect Development Inc, a competing maker of so-called business-to-busin...

NEW YORK, MAR 13: Software maker I2 Technologies Inc plans to buy Aspect Development Inc, a competing maker of so-called business-to-business software, for $9.3 billion in the largest merger ever in the software industry, the companies said on Monday.

I2 will exchange 0.55 share for each Aspect share after Aspect’s two-for-one stock split, representing a 35 per cent premium to Aspect’s closing stock price on Friday, they said. Aspect shares were expected to start trading on a post-split basis today.

The deal represents the latest merger in the burgeoning market of software and services that help businesses link suppliers with customers. Last month business software provider Computer Associates International Inc agreed to buy Sterling Software Inc for $4 billion.

Shareholders of Aspect, which is based in Mountain View, Calif, will own about 18 per cent of the combined company. For the transaction, I2 plans to issue or reserve for issuance about 44.9 million shares of common stock.

Dallas-based I2 also announced on Monday that it plans to buy privately-held software and services provider Supplybase Inc for $380 million in stock.

I2 said both deals are expected to be neutral to 2000 cash earnings and accretive to 2001 cash earnings. The transactions will result in "substantial one-time charges along with ongoing substantial amortization of intangibles," the company said.