Supply chain solution provider continues to shore up finances with latest deal
Dallas — July 5, 2005 — Supply chain solution provider i2 Technologies has sold off its Trade Service Corporation subsidiary to a group of investors led by TSC's current management team for approximately $3 million, the company has reported. The move is the company's latest to shore up its balance sheet as it refocuses on supply chain management applications.
San Diego-based 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.
i2 said in a statement on the sale that TSC's offerings were not a fit for its focus on supply chain solutions. "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," said i2 CEO Michael McGrath in the company's statement.
In addition, i2 said that it shared "relatively no overlap in customers, technology or physical business location" with TSC, 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.
The 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 product lifecycle management 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.
Additional Articles of Interest
— How can you beat the trends and lower your less-than-truckload costs, even in a seller's market? For a guide to help you get started, read the SDCExec.com article "LTL Sourcing: Success for Buyers In A Seller's Market."
— Looking for A guide to content management systems to support product lifecycle information? Read the SDCExec.com article "Managing Content Throughout the Product Lifecycle" for additional insights.
— How are outsourcing and supply chain tasks such as purchasing and inventory management tied to "network-centric operations?" What is a network-centric operation? Read the SDCExec.com article "The Future of Supply Chain Management: Network-centric Operations and the Supply Chain" to find out.
Dallas — July 5, 2005 — Supply chain solution provider i2 Technologies has sold off its Trade Service Corporation subsidiary to a group of investors led by TSC's current management team for approximately $3 million, the company has reported. The move is the company's latest to shore up its balance sheet as it refocuses on supply chain management applications.
San Diego-based 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.
i2 said in a statement on the sale that TSC's offerings were not a fit for its focus on supply chain solutions. "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," said i2 CEO Michael McGrath in the company's statement.
In addition, i2 said that it shared "relatively no overlap in customers, technology or physical business location" with TSC, 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.
The 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 product lifecycle management 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.
Additional Articles of Interest
— How can you beat the trends and lower your less-than-truckload costs, even in a seller's market? For a guide to help you get started, read the SDCExec.com article "LTL Sourcing: Success for Buyers In A Seller's Market."
— Looking for A guide to content management systems to support product lifecycle information? Read the SDCExec.com article "Managing Content Throughout the Product Lifecycle" for additional insights.
— How are outsourcing and supply chain tasks such as purchasing and inventory management tied to "network-centric operations?" What is a network-centric operation? Read the SDCExec.com article "The Future of Supply Chain Management: Network-centric Operations and the Supply Chain" to find out.
- More articles about i2.
