Global trade technology provider Amber Road has announced its acquisition of cloud-based global sourcing and collaborative supply chain platform ecVision for a reported net cash value of $24 million, along with $9 million in future incentives.
With primary offices in the United States and Hong Kong, ecVision has a niche industry support concentration servicing apparel, footwear and retail related supply chain processes. The provider describes its technology as creating a single collaborative application for private label brands, retailers and their trading partners. Named customers are Brown Shoe Company, Coach, Li&Fung, New Balance, PVH Corporation, among others. The cloud based provider has been funded by Fung Capital USA, the private equity partnership among Victor and William Fung of Li and Fung Limited. Li and Fung itself is often characterized as the global logistics go-to firm within the apparel industry offering retailers nearly 15,000 global suppliers in over 60 countries.
Amber Road is a provider of cloud based global trade management (GTM) applications that automate import and export processes to enable goods to flow across international borders in in a compliant and profitable manner. According to the announcement, the combination will extend Amber Road’s presence in the Asia Pacific region while providing more services at lower tiers of the industry supply chain.
At initial glance, the sum of $24 million for a cloud-based B2B supply chain collaboration platform is quite low by today’s M&A standards, considering an industry rule-of-thumb of current software company acquisitions averaging in the range of 3x-4x future earnings, and B2B platforms, much higher. In early February, supply chain business network cloud provider E2open was taken private for a reported sum of $273 million.
That obviously provides Amber Road the opportunity to considerably grow ecVision’s platform revenues applications in broader industry coverage and depth of applications.
Disclosure: E2open is one of other named sponsors of the Supply Chain Matters blog