JDA Software Group Inc. sued Credit Suisse Group AG in New York, accusing the bank of failing to honor a commitment to provide financing for its acquisition of I2 Technologies.
Credit Suisse and Wachovia Bank in August 2008 agreed to provide $450 million in financing to fund the proposed acquisition of I2, Scottsdale, Arizona-based JDA said in a complaint filed yesterday in New York State Supreme Court. Wachovia isn’t named as a defendant.
JDA was scheduled to complete the acquisition on Nov. 6, 2008, until Credit Suisse said it wouldn’t honor its commitment to provide funding for the purchase unless JDA “agreed to several radical changes in the loan terms,” the company said in the lawsuit.
“Credit Suisse retained the fees paid by JDA but did not fund the loan,” forcing the company to terminate the acquisition, pay I2 a $20 million breakup fee and suffer more than $100 million in damages, JDA said.
JDA resumed talks to acquire I2 in August 2009, it said in the complaint. In November 2009, JDA announced it planned to buy the company for an enterprise value of about $396 million, about $50 million more than the purchase price under the original agreement, the company said. JDA completed the acquisition in January 2010.
Steven Vames, a spokesman for Credit Suisse in Boston, declined to comment immediately on the lawsuit in a telephone interview.
The case is JDA Software Group Inc. v. Credit Suisse Securities (USA) LLC, 652997/2011, New York State Supreme Court, New York County (Manhattan).