Not All Acquisitions Happen: JDA and QRS
Part One: Event and Market Impact
P.J. Jakovljevic - November 3, 2004

Event Summary

In mid-July, JDA Software Group Inc. (NASDAQ: JDAS), a prominent global provider of integrated software and professional services for the retail demand chain with over 4,500 customers, and QRS Corporation (NASDAQ: QRSI), a leading provider of collaborative commerce and trading community building solutions, with nearly 10,000 retail and manufacturing customers, announced a definitive agreement for JDA to acquire QRS as the all-stock transaction for an estimated value of $100 million (USD). Under the agreement, QRS was to be merged with a wholly owned subsidiary of JDA, and QRS stockholders were to own approximately 20 percent of the outstanding capital stock of the combined company. Based on the closing price of JDA stock at the time, the transaction was valued at approximately $100 million(USD) and was expected to be accretive to JDA's fiscal 2005 earnings. Direct costs of the acquisition and the costs of the ensuing integration of the two organizations were expected to total $15 to $17 million (USD)...