Largest software merger announced

In what appears to be the largest merger between two software companies, i2

Technologies announced it had agreed to buy Aspect Development for $8.6 billion

in stock. Both companies offer so-called business-to-business (B2B) software for

e-commerce. i2 had sales of $571.1 million in 1999 and earned $23.5 million,

while Aspect had 1999 revenue of $95.1 million and net income of $7.8 million.

The combined company will have 4,000 employees and a research and development

budget of more than $200 million.

"The merger will create a business-to-business marketplace powerhouse with

unmatched solution breadth and depth of functionality, unparalleled content, and

a laser-focus on value creation," said Sanjiv Sidhu, i2's founder, chairman and

chief executive.

Sidhu said the ability to combine i2's Tradematrix software for connecting

businesses with Aspect's database software will give the company a huge lead on

any other vendor in the B2B e-commerce market. Aspect’s database of client

companies includes 180 of the world's largest firms, as well as powerful search

engine software for finding suppliers and buyers on-line.

"Our technology allows companies to buy the right part from the right

supplier at the right price," said Aspect chairman and chief executive Romesh

Wadhwani, who will become vice chairman of i2. Software from the merged company

would also give customers the ability to collaborate in designing products with

their suppliers and partners over computer networks.