☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily
9 January 2013 | Adam Leach
Cloud supply chain software providers GT Nexus and TradeCard are to merge to create a combined business with 20,000 clients, processing more than $100 billion (£62.3 billion) in transactions.
The merger, announced this week, will see the logistics and transportation services of GT Nexus merged with the supply chain finance products of TradeCard. Once the merger goes through, the combined company will be double the size, giving it greater leverage on spend, and it will manage more than $100 billion in direct supply chain trade.
A statement from GT Nexus, which counts Nestlé among its customers, stressed that existing customers would not be negatively impacted by the merger but that they would benefit in the long term from having access to a wider pool of resources from the expanded company.
Sean Feeney, CEO of TradeCard, said in a statement: “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. The strengths of each company are highly complementary and will offer customers a complete solution, covering the supply chain execution lifecycle, from sourcing of goods to final delivery and payment.”
Provided the merger is given the go-ahead by regulatory authorities, it will be finalised in the early part of this year. Following its completion, Feeney will become CEO of the new company, while GT Nexus CEO Aaron Sasson will take on the role of chairman of the board.
GT Nexus currently supplies companies such as DHL, Kraft Foods, Caterpillar and Xerox, while TradeCard works with Levi Strauss & Co and Columbia Sportswear. Combined, the new company will service 20,000 clients.