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| JDAS > SEC Filings for JDAS > Form 8-K on 5-Nov-2009 | All Recent SEC Filings |
5-Nov-2009
Entry into a Material Definitive Agreement
the Intended Structure, the JDA board of directors will consider adding one
mutually agreeable i2 director to its board, and under the Alternative Structure
the appointment is required.
JDA will use cash from financing sources (senior unsecured notes in the
Intended Structure or bank financing in the Alternative Structure, as
appropriate), together with the companies' combined cash balances at closing, to
fund the cash obligations of the Merger Agreement, related transaction expenses,
and to provide cash for the combined companies' ongoing working capital and
general corporate needs. The Merger Agreement requires that any such financing
must be placed into escrow, and must result in a reduction in the shares of JDA
common stock to be issued in the Merger to less than 20% of JDA's common stock
outstanding, so that approval by JDA's stockholders would not be required in the
Intended Structure under applicable NASDAQ rules.
The Merger Agreement contains certain termination rights for both JDA and i2,
and provides that (i) upon termination of the Merger Agreement under specified
circumstances, including a change in the recommendation of the board of i2 or in
the event i2 elects to pursue an alternative acquisition proposal from a third
party, i2 will owe JDA a cash termination fee of $15 million, (ii) upon the
termination of the Merger Agreement because JDA does not obtain financing
necessary to complete the Merger, JDA will owe i2 a cash termination fee of
$30 million and (iii) upon the termination of the Merger Agreement due to JDA's
failure to obtain the required approvals of its stockholders, if necessary, JDA
will owe i2 a cash termination fee of $7 million.
The foregoing description of the Merger Agreement is included to provide you
with information regarding its terms. It does not purport to be a complete
description and is qualified in its entirety by reference to the full text of
the Merger Agreement, which is filed as Exhibit 2.1 hereto and is incorporated
herein by reference.
Voting Agreements
Concurrently with the execution of the Merger Agreement, JDA and i2 entered
into voting agreements (the "i2 Voting Agreements") with the directors and
certain executive officers of i2 and with the sole holder of the Series B
Preferred Stock, pursuant to which such signatories have agreed to vote in favor
of the Merger Agreement and against any other proposal or offer to acquire i2.
The i2 Voting Agreements apply to all shares of i2 stock held by the signatories
at the record date for the relevant i2 stockholder meeting. The i2 Voting
Agreements restrict the transfer of shares by the signatories, except under
certain limited conditions.
Concurrently with the execution of the Merger Agreement, JDA and i2 entered
into voting agreements (the "JDA Voting Agreements" and together with the i2
Voting Agreements, the "Voting Agreements") with the directors and certain
executive officers of JDA, pursuant to which such signatories have agreed to
vote in favor of the issuance of the JDA common stock in connection with the
Merger and an amendment to the JDA Certificate of Incorporation to increase the
authorized common stock of JDA if a meeting of JDA stockholders is held to
consider such proposals. The JDA Voting Agreements apply to all shares of JDA
common stock held by the signatories at the record date for the relevant JDA
stockholder meeting (if such a
meeting is held). The JDA Voting Agreements restrict the transfer of shares by
the signatories, except under certain limited conditions.
The foregoing description of the Voting Agreements does not purport to be
complete and is qualified in its entirety by reference to the full text of the
forms of Voting Agreements, which are filed as Exhibits 10.1, 10.2 and 10.3
hereto and are incorporated herein by reference.
Debt Commitment Letter
Concurrently with the execution and delivery of the Merger Agreement, (i) JDA
received a commitment letter ("Commitment Letter") from Wells Fargo Securities
LLC and Wells Fargo Foothill LLC (together, "Wells Fargo"), pursuant to which,
subject to the conditions set forth therein, Wells Fargo committed to provide
JDA with up to $140 million of senior secured debt financing, of which
$120 million shall constitute a term loan and up to $20 million shall constitute
a revolving credit facility (the "Wells Fargo Facilities"). The funds to be
received by JDA pursuant to the transactions contemplated by the Commitment
Letter are to be deposited into escrow, and upon consummation of the Merger,
would be used (together with JDA's and i2's cash on hand) to fund the
obligations of JDA under the Alternative Structure, including the acquisition
price, to pay transaction costs, and to provide working capital if the financing
for the Intended Structure is not obtained. No amounts will be borrowed under
the Commitment Letter under the Intended Structure.
The foregoing description of the Commitment Letter is included to provide you
with information regarding its terms, does not purport to be a complete
description and is qualified in its entirety by reference to the full text of
the Commitment Letter, which is filed as Exhibit 10.4 hereto and is incorporated
herein by reference.
Item 8.01 Other Events.
On November 5, 2009, JDA and i2 issued a joint press release announcing the
execution of the Merger Agreement. The press release is attached as Exhibit 99.1
and is incorporated herein by reference.
IMPORTANT ADDITIONAL INFORMATION
This filing is being made in respect of the proposed transaction involving JDA
and i2. In connection with the proposed transaction, JDA plans to file with the
Securities and Exchange Commission (the "SEC") a Registration Statement on Form
S-4 containing a Joint Proxy Statement/Prospectus and each of JDA and i2 plan to
file with the SEC other documents regarding the proposed transaction. The
definitive Joint Proxy Statement/Prospectus will be mailed to stockholders of
JDA and i2. INVESTORS AND SECURITY HOLDERS ARE URGED TO CAREFULLY READ THE JOINT
PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC IN THEIR
ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and security holders will be able to obtain free copies of the
Registration Statement and the Joint Proxy Statement/Prospectus (when available)
and other documents filed with the SEC
by JDA and i2 through the website maintained by the SEC at www.sec.gov. In
addition, investors and security holders may obtain free copies of the
Registration Statement and the Joint Proxy Statement/Prospectus (when available)
and other documents filed with the SEC from JDA by directing a request to JDA
Software Group, Inc., 14400 North 87th Street, Scottsdale, Arizona 85260,
Attention: Investor Relations (telephone: (480) 308-3000) or going to JDA's
corporate website at www.jda.com, or from i2 by directing a request to i2
Technologies, Inc., One i2 Place, 11701 Luna Road, Dallas, Texas 75234,
Attention: Investor Relations (telephone: (469) 357-1000) or going to i2's
corporate website at www.i2.com.
JDA, i2, and their respective directors and executive officers, may be deemed to
be participants in the solicitation of proxies in respect of the proposed
transaction. Information regarding JDA's directors and executive officers is set
forth in JDA's proxy statement for its 2009 Annual Meeting of Stockholders,
which was filed with the SEC on April 7, 2009, and Annual Report on Form 10-K
filed with the SEC on March 13, 2009. Information regarding i2's directors and
executive officers is set forth in i2's proxy statement for its 2009 Annual
Meeting of Stockholders, which was filed with the SEC on April 28, 2009, and
Annual Report on Form 10-K filed with the SEC on March 12, 2009. Additional
information regarding the interests of such potential participants will be
included in the Joint Proxy Statement/Prospectus and the other relevant
documents filed with the SEC (when available).
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description
2.1 Agreement and Plan of Merger dated November 4, 2009, by and among JDA,
Merger Sub and i2.*
10.1 Form of i2 Voting Agreement for R2 Top Hat, Ltd. dated November 4, 2009, by
and among JDA, i2 and R2 Top Hat, Ltd.
10.2 Form of i2 Voting Agreement for directors and executive officers of i2,
dated November 4, 2009, by and among JDA, i2 and directors and officers of
i2.
10.3 Form of JDA Voting Agreement for directors and executive officers of JDA,
dated November 4, 2009, by and among JDA, i2 and directors and officers of
JDA.
10.4 Commitment Letter dated November 4, 2009, by and among JDA, Wells Fargo
Securities LLC and Wells Fargo Foothill LLC.
99.1 Joint press release, dated November 5, 2009.
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* Certain schedules have been omitted and JDA agrees to furnish supplementally to the Commission a copy of any omitted schedules upon request.
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