On Monday of this week, multi-enterprise B2B collaboration platform vendor GT Nexus and cloud-based sourcing provider TradeCard announced that the two companies have entered into a definitive merger agreement. Both provide and operate advanced business collaboration networks that supply chains rely on to better manage physical and financial processes on a global scale with thousands of trading partners.  This merger remains subject to customary closing conditions and clearance from antitrust regulatory agencies.

If consummated, this merger brings together GT Nexus’s cloud-based logistics and transportation management with the sourcing and financial supply chain capabilities of TradeCard. As noted in the press release, the combined entity has the potential to serve 20,000 businesses with a combined clod platform representing $100 billion in trade. GT Nexus brings industry focus for manufacturing, retail and logistics services while the TradeCard focus has been in retail and consumer soft goods. According to a posting from the San Francisco Business Times, the two companies’ customers include the 10 largest logistics 3PL’s, including FedEx and UPS, along with 30 of the largest ocean transportation providers. Reports further indicate that the combined privately-held company will be based in Oakland California, the current home of GT Nexus. Also announced was that current TadeCard CEO Sean Feeney will lead the combined company while current GT Nexus CEO Aaron Sasson will be chairmen.  The transaction is expected to close in early 2013.

Supply Chain Matters initially views this announcement as significant, and in the context of a market response to the previous SAP acquisition of Ariba. The combination of both firms can provide the market a broader capability in integrating supply chain logistics and fulfillment execution information while relying on a consistent payments platform.  It is yet another reinforcement of the hot market dynamics surrounding cloud-based B2B platforms.

We will feature more detailed commentary after this merger is consolidated and there has been more briefing information provided regarding future strategic direction.

Bob Ferrari