Subscribe to our free, weekly email newsletter!


GT Nexus and TradeCard announce definitive merger agreement

By Jeff Berman, Group News Editor
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.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

When an industry is changing rapidly, companies must adapt in order to survive. In this whitepaper, a global publisher was seeking a partner that could mitigate risk and build a platform flexible enough for their shifting customer expectations. The solution enabled the company to rewrite their operations game plan and transform their supply chain.

Global trade management technology provider Amber Road (formerly known as Management Dynamics) said this week it has acquired ecVision, a cloud-based provider of global sourcing and collaborative supply chain solutions.

While it is already reaping myriad benefits from ORION (On-Road Integrated Optimization and Navigation), a proprietary routing platform for its drivers rolled out in late 2013, transportation and logistics bellwether UPS announced big plans for the technology this week.

Article Topics

News · GT Nexus · Cloud · Cloud Computing · TradeCard · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA