Breaking News: GXS and Inovis Sign Definitive Merger Agreement

GAITHERSBURG, MD and ATLANTA, GA — 12/08/09 — GXS and Inovis, leading providers of business-to-business (B2B) e-commerce services and software solutions, today announced that they have signed a definitive agreement to merge. Inovis brings with it approximately 16,000 customers from a range of industries including retail and consumer products, financial services, transportation/logistics and automotive. The combined company creates a leading global provider of B2B e-commerce services and gives the company an even greater global presence.The merger of GXS and Inovis will further streamline customers’ global B2B deployments and provide them with a comprehensive range of B2B integration software and services-based solutions. GXS is a leading B2B e-commerce services provider with a strong focus on helping customers optimize their global supply chains through its software-as-a-service (SaaS) and software-based portfolio that includes B2B messaging services, supply chain visibility, product master data management and B2B Gateway software. Inovis is a leader among B2B Gateway software providers and has a strong portfolio of complementary software and services including managed file transfer, supply chain visibility, product catalog, B2B Gateway and multi-enterprise master data management software.

“Today’s merger announcement marks a turning-point in the B2B e-commerce industry,” said Bob Segert, president and CEO of GXS. “GXS sees strong potential for further growth in B2B managed services and B2B integration software. This demand must be met by a company with a diversified portfolio and global scalability. The combined company will bring together a leading provider of B2B services, GXS, and a leading provider of B2B software, Inovis, into one, giving customers an invaluable portfolio for all of their global B2B e-commerce needs. Over the next few months, we will be focused on supporting our customers, reviewing our broad portfolio and providing the most reliable and scalable B2B platform available.”

GXS and Inovis expect to close the merger in early 2010, subject to regulatory review. During the merger closing process, all services and solutions will continue to be supported and sold. The goal of any integration activity will be to provide customers with a well-informed, seamless, managed transition with no business interruption. The company’s goal is to give customers capable, reliable, high-performance solutions for all their B2B e-commerce needs.

“Both GXS and Inovis are industry pioneers with proven abilities to serve world-class customers,” said Sean Feeney, president and CEO of Inovis. “The complementary products of these two companies create significant value for customers that are seeking a single global provider for B2B e-commerce. Both companies share a passion for raising the bar on innovation and operational excellence and have the specific industry knowledge needed to help our customers achieve true, seamless integration with business partners located anywhere in the world. This merger is a big step forward in the evolution of the B2B e-commerce industry.”

GXS was advised by Barclays Capital and Citibank on the transaction. Inovis was advised by Kirkland & Ellis and BofA Merrill Lynch on the transaction. Further details on the merger of GXS and Inovis can be found here: www.gxs.com/inovis and www.inovis.com/gxs.

About Inovis

Inovis offers software and services that enable companies to do business electronically across their entire trading community. Each day, over 16,000 companies across the globe rely on the Inovis platform to reliably send and receive purchase orders, synchronize data and manage exceptions in order to lower supply chain costs and get products to customers faster. Founded in 1983, the company is based in Alpharetta, Georgia and has offices around the globe. For more information, please visit www.inovis.com, read our blog at http://blogs.inovis.com, send an email to info@inovis.com, or follow us on Twitter at http://twitter.com/inovis.

About GXS

GXS is a leading global provider of B2B e-commerce solutions that simplify and enhance business process integration and collaboration among trading partners. Organizations worldwide, including more than 70 percent of the Fortune 500, leverage the on-demand services on GXS Trading Grid® to extend supply chain networks, optimize product launches, automate warehouse receiving, manage electronic payments and gain supply chain visibility. GXS Managed Services, GXS’ B2B outsourcing solution, empowers customers with the expertise, technical infrastructure and program support to conduct B2B e-commerce with trading partners globally.

Based in Gaithersburg, Md., GXS has an extensive global network and has local offices in the Americas, Europe and Asia-Pacific regions. GXS can be found on the Web at www.gxs.com, http://blogs.gxs.com/ and http://twitter.com/gxs.

All products and services mentioned are trademarks of their respective companies.


5 thoughts on “Breaking News: GXS and Inovis Sign Definitive Merger Agreement

  1. So I wonder what this means. Does GXS van migrate to Inovis van or Inovis to GXS? I really like the Inovis van, the interface / layout. Maybe GXS can make the QRS catalog useful again.

  2. Here is an interesting reply from Daniel Nurrenbrock on linkedin EDI group about the announcement:

    While this news is ‘Breaking News’ it certainly is not surprising news. Having worked at Inovis for a year and a half it was easy to see it coming. The worst event that happened at Inovis was getting the Dell outsourcing deal. Yes it was a huge deal although with outsourcing Inovis can’t recognize all of that revenue right away and it was in the vicinity of 25 million dollars. There were however so many promises made to Dell for software changes to meet their requirements that it paralyzed Inovis. Inovis developers worked practically 7 days a week to meet the demands of Dell and these demands and changes were daily. While Inovis continues to use TLe in an outsourcing model because of BizManagers inefficiencies in translation, BizManager is used for communication of data for Dell. There has been so many demands put on Inovis by Dell that there is actually a Dell version of BizManager.

    This has not allowed Inovis to be proactive to the rest of their customer base. This has prohibited any worthwhile upgrades to any of the Inovis product lines. Inovis was caught between the proverbial rock and a hard place. Certainly they could not fail to produce for Dell and lose that business and have that news get out. That alone would have destroyed their outsourcing business. On the other side getting that business dragged Inovis into the abyss.

    I would be somewhat surprised if the GXS VAN would be sunsetted given the small number of customers Inovis has on Inovisworks in comparison to GSX. Inovis boasts a Tier 4 network but that is great for powerpoints and marketing really. As far as software it should be interesting to see what happens. Inovis never had a Webforms solutions that had the slightest feature/functionality required to compete. TLe is still the original Harbinger product, TLi is the original Premenos AS/400 product, and BizManager is the original IPnet product all of which is pretty old technology by todays standards.
    Inovis does have a product known as Actionable Intelligence but they don’t sell that product because of its complexity. Actionable Intelligence is a service that a customer can utilize ‘after’ signing up for the Inovis VAN and then Inovis builds it.

    All in all it should be interesting to see how all this plays out next year

  3. I believe that this is an excellent merger with the software and the van services of GHX (formerly GEIS) that will bring strength to both companies. Hopefully the merger will allow a greater competition with Sterling ( a AT&T) company and IBM (DataStage- formerly Mercator and Web Methods) in the market place. The merger could be improved if WebSphere was also a partner in order to cover the messaging segment in the B2B / EDI world.

  4. I agree with Robert – Sterling is always the 800 lb. gorilla in the room and competition is what is really needed. Unfortunately, I think we will continue to see more consolidations even though we are slowly moving out of the recession.

    I guess only time will tell.

  5. I concur. Interesting though that Inovis (post Harbinger, post Peregrine) still could not be a “Jack Welch” type of company and neither could GEIS. Just a thought.
    Oh – I may be found on Linkedin with my professional history presented. :-)

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