The data integration software provider terminates its merger agreement with JDA Software Group in favor of an acquisition by Inovis International.
With little more than a month left for JDA Software Group Inc. to close on its $100 million acquisition of QRS Corp., QRS pulled the plug on the deal in favor of a $116 million acquisition by Inovis International Inc.
QRS announced today the termination of its merger agreement with JDA and said it will pay $3.75 million in termination fees to end the agreement that was expected to close in October.
After it announced its merger agreement with JDA in June, QRS received five unsolicited proposals from companies looking to acquire the retail-focused data synchronization and data integration software provider, according to a statement released by QRS Friday morning,
Despite its merger agreement with JDA, QRS board of directors determined that they could legally consider the offers and "engaged in extensive negotiations with due diligence" with each of the suitors. After investigating each offer, QRS board determined a deal with Atlanta-based Inovis would better benefit its shareholders than a deal with JDA, according to the statement.
Scottsdale, Ariz.-based JDA develops demand chain software for the retail industry. The acquisition of QRS would have been its largest to dateand another step in its strategy to stay afloat in the ever-consolidating supply chain software industry, according to Hamish Brewer, president and CEO of JDA, who spoke with eWEEK in July.
"The QRS deal is symptomatic of how were growing. Were constantly working on building our business organically, but the fact is [we see] larger leaps and bounds through acquisition," said Brewer, in the July interview. "Our industry as a whole is moving in that direction. The reality is there are a lot of software companies that are not going to make it on their own. Our strategy is to ensure that we are one of those [that survive]."
Click here to read more about how JDA is wrestling with whether to build or buy new technology.
QRS, of Richmond, Calif., and JDA were well down the road with a product development map, including new functionality around data synchronization and data integrationkey areas as companies increasingly look outside their four walls to electronically conduct business with partners, customers and suppliers.
Under the terms of QRS new agreement, a wholly-owned subsidiary of Inovis will merge with and into QRS.
The deal is expected to close sometime next quarter, subject to shareholder approval.
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