UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934
                                (Amendment No. )
                               I2 TECHNOLOGIES INC
              ----------------------------------------------------
                                (Name of Issuer)
              Common Stock, par value $0.00025 par share per share
              ----------------------------------------------------
                         (Title of Class of Securities)
                                    465754208
              ----------------------------------------------------
                                 (CUSIP Number)
                                   12/31/2009
              ----------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:

[X] Rule 13d-1(b)
[ ] Rule 13d-1(c)
[ ] Rule 13d-1(d)

The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of
the Act (however, see the Notes).





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CUSIP No. 465754208

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1. NAME OF REPORTING PERSON
   Water Island Capital, LLC
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
   Not Applicable
   (a) [ ]
   (b) [ ]
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3. SEC USE ONLY

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4. CITIZENSHIP OR PLACE OF ORGANIZATION
   Delaware
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NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH:
            5. SOLE VOTING POWER
               1479977
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            6. SHARED VOTING POWER
               None
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            7. SOLE DISPOSITIVE POWER
               1479977
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            8. SHARED DISPOSITIVE POWER
               None
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9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   1479977
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10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
    Not Applicable
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11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
    6.500
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12. TYPE OF REPORTING PERSON
    IA
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CUSIP No. 465754208
-----------------------------
Item 1(a) Name of Issuer:
I2 TECHNOLOGIES INC
Item 1(b) Address of Issuer's Principal Executive Offices:
ONE I2 PLACE
11701 LUNA RD
DALLAS TX 75234

Item 2(a) Name of Person(s) Filing:

WATER ISLAND CAPITAL LLC ("WIC")
Item 2(b) Address of Principal Business Office:

41 MADISON AVE SUITE 2802
NEW YORK NY 10010

Item 2(c) Citizenship:
WIC is a Delaware limited liability company.

Item 2(d) Title of Class of Securities:
Common Stock, par value $0.00025 par share per share (the "Stock")

Item 2(e) CUSIP Number:
465754208

Item 3 Type of Person:
(e) WIC is an Investment Adviser in accordance with Rule 13d-1(b)(1)(ii)(F).

Item 4 Ownership:
(a) Amount beneficially owned:
    1479977
(b) Percent of class:
    6.5000
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote:
    1479977
(ii) Shared power to vote or to direct the vote:
     None
(iii) Sole power to dispose or direct the disposition of:
      1479977
(iv) Shared power to dispose or direct the disposition of:
     None

Item 5 Ownership of Five Percent or Less of a Class:
       Not Applicable

Item 6 Ownership of More than Five Percent on Behalf of Another Person:
       Not Applicable

Item 7 Identification and Classification of the Subsidiary Which Acquired the
       Security Being Reported on by the Parent Holding Company:

       WIC is an Investment Adviser registered under section 203 of the
       Investment Advisers Act of 1940, as amended.





CUSIP No. 465754208
--------------------------------
Item 8 Identification and Classification of Members of the Group:
Not Applicable

Item 9 Notice of Dissolution of Group:
Not Applicable

Item 10 Certification:
By signing below I certify that, to the best of my knowledge and belief, the
securities referred to above were acquired and are held in the ordinary
course of business and were not acquired and are not held for the purpose of
or with the effect of changing or influencing the control of the issuer of
the securities and were not acquired and are not held in connection with or
as a participant in any transaction having that purpose or effect.

Signature
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete
and correct.

Date: 2/09/2010

WATER ISLAND CAPITAL LLC

By: /s/ Matthew Hemberger
------------------------------
Matthew Hemberger
Chief Financial Officer and Chief Compliance Officer