IT Investment Firm Buys 90% Of GE Unit - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

IT Investment Firm Buys 90% Of GE Unit

General Electric says it's divesting itself of all but 10% of GXS because it doesn't fit the company's growth strategies for its core businesses--manufacturing and financial services.

IT investment firm Francisco Partners has paid $800 million to buy 90% of General Electric Co.'s business-to-business trading exchange and exchange-services business, GE Global eXchange Services. Harvey Seegers, president and CEO of GE Global eXchange Services, will remain in that post under the new ownership.

David Stanton, a partner at Francisco Partners, in Menlo Park, Calif., says GXS, which offers technology services to trading exchanges and operates private exchanges, will expand that business by acquiring other electronic commerce companies and hiring additional technology experts. Francisco Partners specializes in acquiring technology companies through buyouts.

General Electric, in Fairfield, Conn., this week says it's divesting itself of all but 10% of GXS because it doesn't fit the company's growth strategies for its core businesses--manufacturing and financial services. Seegers says Global eXchange Services, as the company will be named, will retain its focus on business-to-business supply-chain services. "We continue to think that supply-chain management is the place where companies can most quickly improve their bottom line," he says.

GXS currently boasts more than 100,000 customers and posted revenue of $450 million in 2001. GE, which was responsible for about 5% of GXS's revenue last year, will remain the company's largest customer.

The boards of directors of both companies have approved the agreement, and the transaction is expected to close by November. GE is a diversified global manufacturer, financial-services company, and owner of the NBC television network. When completed, the divestiture is expected to result in a pretax gain of approximately $500 million to GE.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Commentary
Gartner Forecast Sees 7.3% Shrinkage in IT Spending for 2020
Joao-Pierre S. Ruth, Senior Writer,  7/15/2020
Slideshows
10 Ways AI Is Transforming Enterprise Software
Cynthia Harvey, Freelance Journalist, InformationWeek,  7/13/2020
Commentary
IT Career Paths You May Not Have Considered
Lisa Morgan, Freelance Writer,  6/30/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll