US group GT Nexus, based in Oakland, California and New York-based TradeCard have agreed to merge, and said that the combined companies would become the world’s largest cloud-based business network for global trade and supply chain management (SCM), managing over $100 billion in direct supply chain trade.
The deal, subject to regulatory approval, will create a business employing around 1,000 people and serving around 20,000 corporates in businesses ranging from manufacturing to retail.
“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,” said Sean Feeney, chief executive officer (CEO) of TradeCard.
Feeney will hold the same position in the enlarged group, which will be headquartered in Oakland. GT Nexus’ CEO, Aaron Sasson, will serve as chairman and TradeCard founder Kurt Cavano as vice chairman.
Commenting on the deal Enrico Camerinelli, senior analyst for Aite Group and a regular blogger for
, said: “The future of global trade will be on the cloud. The focus here is not on technical interoperability but rather on the possibility to exchange transactions on the cloud. Logistics, trade and supply chain exchanges will be able to use the cloud to integrate with financial supply chain processes.
“Following SAP’s acquisition of Ariba, other business-to-business (B2B) network players have been forced to seek out mergers for strategic growth, just to compete. The deal between GT Nexus and TradeCard may be a direct reaction to SAP’s acquisition of Ariba. Regardless, it should position them to remain competitive in this arena.”
A recent Gallup poll found that respondents identified the 'economy in general' as their biggest concern.
Sentiment in the financial services sector deteriorated in the three months to September, as firms digested the challenges of lower interest rates and the uncertainty caused by the vote to leave the European Union (EU), according to the latest CBI/PwC Financial Services Survey.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
The proposals of both US presidential candidates could shake up operating conditions in several sectors, reports the credit ratings agency.