In a move to build a cloud-based pOréal for end-to-end supply chain planning, software vendor E2open LLC will acquire the global trade management (GTM) software provider Amber Road for $425 million and take it private, Austin, Texas-based E2open said today.
East Rutherford, N.J.-based Amber Road has been losing money in recent quarters, most recently reporting a $3.3 million net loss for the first quarter of 2019, an improvement from the $5.4 million net loss it posting for the same period last year. The company collected revenues of $21.1 million in its most recent quarter, up slightly from the $20.1 million it declared for the first quarter of 2018.
In contrast, privately-held E2open has been on an acquisition spree, buying both the ocean shipping network provider INTTRA and the transportation management system (TMS) provider Cloud Logistics in 2018, and four other firms since 2016.
The two parties expect their transaction to close before the end of the third quarter of fiscal year 2019, pending customary closing conditions and approval by antitrust regulators. Upon that closing, Amber Road will become a privately held company, no longer trading its stock, E2open said.
E2open and Amber Road Announce Definitive Acquisition Agreement: https://t.co/nnxl7k8awo pic.twitter.com/tmXFb4CfFM
— E2open (@E2open) May 13, 2019
Combining the two firms' software portfolios will allow customers to operate their entire end-to-end supply chain - from sourcing to manufacturing to trade management to logistics and distribution to omnichannel operations - from one place in the cloud, according to E2open.
Amber Road produces a GTM platform that helps companies digitize their supply chains with solutions across sourcing, global logistics, and trade compliance, featuring the firm's Global Knowledge product, a repository of global trade rules and regulations across 170 countries. "The combination of E2open's supply chain and logistics technologies with Amber Road's global trade management platform will... allow customers to more fully digitize their operations and better compete in global markets," Amber Road CEO James Preuninger said in a release.
E2open provides a networked supply chain solution, featuring a broad portfolio of applications that enable complex supply chains to better plan, collaborate, and execute their end-to-end operations, the company says. According to E2open, acquiring Amber Road will extend that portfolio in five ways, by adding: trade content information services to improve sourcing decisions and lower costs; trade management solutions to automate import and export processes; duty deferral and free trade agreement management solutions to improve margins; sourcing solutions for brand companies in the apparel and footwear industries; and a network of global trade partners with customs filing capabilities.
"In joining forces we envision a solution suite with accelerated innovation to connect, streamline, and operate all aspects of global sourcing, manufacturing, logistics, distribution, trade and compliance, resulting in immediate benefits for all stakeholders," E2open President and CEO Michael Farlekas said in a release. "We believe combining Amber Road's advanced trade management and supply chain capabilities with E2open's end-to-end networked supply chain solutions will further improve margins, lower risks and drive operational flexibility and efficiency for our customers."
Copyright ©2024. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing