QRS Ends Merger Deal

Talk about getting cold feet at the altar.

Electronic data interchange (EDI) specialist QRS Corp. of Richmond, Calif., said it has terminated its planned merger with JDA Software Group Inc. of Scottsdale, Ariz. Instead, QRS Corp. will be acquired by Atlanta-based Inovis International Inc., which will pay about $117 million, or $7 per share, for the company.

Despite agreeing to a $100 million deal with JDA in June, QRS’ board said it had the option to accept a better offer. Inovis’ cash offer came after the JDA deal was announced. QRS had to pay JDA a $3.75 million termination fee.

Inovis provides online trading solutions for retailers, allowing them to exchange documents and information with suppliers over the Internet. QRS provides the cataloging tools necessary for retailers to conduct EDI transactions.

QRS said the turnabout was done with shareholders in mind.

“This agreement brings together two companies with a shared commitment to excellence. I’m confident that our shareholders and customers will benefit from this combination,” QRS Chief Executive Liz Fetter said in a statement.

Under the agreement, QRS will become a wholly owned subsidiary of Inovis. All QRS directors and executive officers have agreed to vote in favor of the transaction. Completion of the merger, expected to close in the fourth quarter, is subject to the approval of QRS stockholders.Robert McAllister