Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications

    GE Sells GXS to Francisco Partners

    By
    Renee Boucher Ferguson
    -
    June 24, 2002
    Share
    Facebook
    Twitter
    Linkedin

      General Electric Global Exchange Services (GXS) announced today that it is being acquired by Francisco Partners, a technology buyout fund.

      Francisco Partners, of Menlo Park, Calif., is expected to pay about $800 million for GXS.

      The transaction is expected to close by Halloween.

      Including its former incarnation as GE Information Services, GXS has been a division of GE for 36 years, according to Harvey Seegers, president and CEO of GXS.

      About six years ago, Information Services began focusing on the emerging e-business sector and morphed into GXS, which provides business-to-business services and software.

      GXS has evolved into one of the largest B2B e-commerce networks in the world, with more than 100,000 trading partners.

      However, GXS no longer fits GEs strategic model, which is okay with Seegers.

      “I am extremely pleased to be a freestanding company and not to be a small part of a huge company,” said Seegers in Gaithersburg, Maryland.

      As a part of the Francisco Partners technology portfolio, GXS will have the nimbleness and flexibility to acquire and keep new talent, and to acquire new technology, says Seegers.

      “We will look to synergistic acquisitions in the world of B2B e-commerce,” said Seegers, who will stay on as CEO with the new company. “Were not looking to change our business model, and were not looking to go that far a field.”

      Global Exchange Services – theyll drop the GE part of the moniker, even though GE will maintain a ten percent stake in GXS – will focus on services around collaboration, negotiations and transactions in the supply chain.

      The company, which considers its biggest competitor IBM in the EDI translation market, will also look to XML and Web Services to be part of its future.

      The sale of GXS comes as a surprise.

      The company has 60 percent of its customer base hailing from Fortune 500 companies and their suppliers, with the other 40 percent coming from the GE Global Supplier Network – GEs mandated program for suppliers to transact with GE electronically.

      Those suppliers will remain with GXS, according to Seegers.

      GXS, for its part, will remain at its current location and has no plans for layoffs, according to Seegers.

      When completed, the divestiture is expected to result in a pretax gain of about $500 million for GE, according to officials.

      Related stories:

      • Service Helps Small Businesses Integrate With GXS
      • GXS Templatizes App Integration
      Renee Boucher Ferguson

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×