i2 Tech to get $100m investment

i2 Technologies, Inc, a provider of closed-loop supply chain management solutions, has announced that Q Investments, a private investment firm and one of i2's significant investors, has agreed to make a $100 million equity investment in the company.

Q Investments currently holds approximately 32 million shares of common stock and $9 million of convertible debt of i2. The fresh move will expand Q Investment's equity holdings in i2 to approximately 140 million shares, representing a 26 per cent ownership of the company on a converted basis.

The $100 million investment will increase i2's cash position to approximately $390 million based on the ending cash position of $290 million as of March 31, 2004.

As a part of the investment agreement, i2 has agreed to expand its current board of directors to seven members of which two of the board members will represent Q Investments.

"We believe that this investment significantly strengthens i2, and will benefit our customers and our shareholders. Q Investments has a successful track record in investing in firms in transition. This investment strengthens our financial position by increasing our total cash position and by putting the firm in a net positive cash position," Katy Murray, i2's CFO, said.