GT Nexus and TradeCard announce definitive merger agreement
January 07, 2013
Given the growing role of cloud computing in the logistics and supply chain sector, today’s announcement of a merger between GT Nexus, a cloud-based logistics and global transportation control solutions for manufacturers, retailers and logistics service providers, and TradeCard, a provider of cloud-based financial supply chain and production visibility solutions for retail and consumer soft goods, is expected to result in the world’s largest cloud-based business network for global trade and supply chain management, according to company officials.
With the meshing of these companies, GT Nexus and TradeCard said they expect to cumulatively manage more than $100 billion in direct supply chain trade.
They added that the merger is subject to customary closing conditions and clearance from antitrust regulatory authorities and is expected to close early in the second quarter. The company will be based in Oakland, Calif., where GT Nexus is located, and have various regional offices in the U.S. and abroad. Officials said TradeCard CEO Sean Feeney will serve as CEO of the merged company, and GT Nexus CEO Aaron Sassman will serve as Chairman of the Board, with TradeCard Founder Kurt Cavano serving as Vice Chairman. When the deal is made official, details regarding the company’s name and leadership structure will be announced.
Cloud computing is commonly defined as the shared software and information that users access via the web—the trend permeated most software sectors as users demand faster implementation times, lower upfront investments, and less resource-intensive ways to get the programs that they need to run their businesses.
And as cloud technology continues to replace licensed and installed traditional software in the corporate enterprise, global supply chain management, GT Nexus and TradeCard say it represents the next big opportunity for driving business agility and operational excellence. What’s more, they said the combined entity will become the world’s biggest cloud information utility, with a global network of more than 20,000 businesses spanning various industries—ranging from retail and apparel to high tech, automotive, heavy industry, consumer products, pharmaceutical, chemicals, commodities, finance and logistics.
“The deal has been in the works for several months,” said Bryan Nella, director, corporate communications for TradeCard. “The merger is driven by the opportunity for growth and market leadership. This is a merger to drive competitive advantage and accelerate growth—not to reduce costs. We will focus on delivering end-to-end supply chain visibility, collaboration and control to companies in all of these industries. Geographically, we will continue focusing on the Americas, where both companies have strong presence; tap into GT Nexus’ significant presence in Europe; and leverage TradeCard’s substantial footprint in Asia-Pacific. Together, we will focus on expanding our network to add more buyers, suppliers and service providers across these regions.”
Nella said TradeCard and GT Nexus are merging to offer shippers a single cloud-based platform for end-to-end supply chain visibility, collaboration and control.
“Customers will have the ability to manage the complete supply chain lifecycle, from sourcing of goods to final delivery and payment,” he said. “This will provide them with the ability to manage the complete supply chain lifecycle, from sourcing of goods to final delivery and payment. A single cloud-based platform will provide end-to-end supply chain visibility, collaboration and control.”
Other benefits of this merger cited by Nella include:
-future product development efforts will bring combined and focused on the highly complementary, best-in-class capabilities that each company brings;
-by tapping into the combined product and services portfolio, shippers will have the opportunity to work with a single provider to fulfill all global supply chain related requirements;
-shippers will be empowered to extend the value of their PLM and ERP systems by deploying a single system of record to manage their entire supply network; and
the combined company’s worldwide network of experts will ensure that new capabilities are deployed efficiently, that trading partners are activated quickly and that customer support is delivered in-language and in time zone for all users of the platform.
“Both companies share a common technology vision that networked platforms, delivered in the cloud, is the path forward for companies that source and sell goods globally,” said Sean Feeney, CEO of TradeCard, in a statement. “The strengths of each company are highly complementary and will offer customers a complete solution, covering the entire supply chain execution lifecycle, from sourcing of goods to final delivery and payment.”
Adrian Gonzalez, director of Boston-based Logistics Viewpoints, applauded the news of this merger, explaining the two companies complement each other well.
“They are both network-based solution providers, where connectivity to trading partners is at the core of their respective solutions,” he said. “The merger brings together the financial supply chain (TradeCard, PO to Financial Settlement) with the physical supply chain (GT Nexus, global trade movements and visibility). And the timing seems right too—while I’ve been a big proponent of network-based solutions for a long time, particularly for cross-enterprise business processes, I believe more and more companies are starting to ‘get it’—they’re starting to understand the unique benefits a network-based solution can provide versus a traditional, standalone, behind-the-firewall one.”
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