GXS Merges with Inovis

GXS has merged with Inovis, to create a global provider of B2B integration services. No financial terms were disclosed. Francisco Partners will be the combined company’s majority shareholder, while other existing backers include Golden Gate Capital, Cerberus Capital Management and Norwest Venture Partners.

GXS, a leading provider of business-to-business (B2B) e-commerce solutions, today announced the completion of its merger with Inovis. The merger creates the world’s largest network of integrated business communities, with exceptionally deep vertical expertise and an expansive global footprint. Together, the network platforms of both companies — GXS Trading Grid® and Inovisworks™ — represent over $200 million in cumulative research and development since 2004, when the companies initiated the transition of traditional value-added networks (VANs) to service-oriented, integration platforms capable of delivering high-value managed services.

The combined company now has over 40,000 direct customers, and offers unique capabilities in a variety of industries, including retail, automotive, consumer products, financial services, high-tech manufacturing, logistics and transportation. To serve our customers’ global operations, suppliers, and customers, GXS maintains direct operations in over 20 countries, offering customers the advantage of a single worldwide provider, a global feature set, and a consistent high-quality service expectation.

“With this merger, our company will significantly advance its B2B e-commerce capabilities to serve our customers’ integrated business networks in new and more impactful ways,” said Bob Segert, president and CEO of GXS. “By combining the managed services leadership, multi-national footprint and vast trading partner network of GXS with the application suites and deep retail experience from Inovis, we are optimally positioned to serve both large and small enterprises around the world. Going forward, GXS will continue to deliver B2B e-commerce solutions that will enable our customers to win in the marketplace.”

“The completion of this merger signals the beginning of a new, more powerful and dynamic company,” said Jim Eberle, senior vice president of Inovis integration. “The B2B industry is changing rapidly and the excitement and rejuvenation is being felt not only within our new company, but amongst our customers and business partners around the world. With the combined resources of GXS and Inovis, we are building a strong, interlocked team of knowledgeable and passionate employees. This new team is dedicated to delivering pioneering products and services that will enable our customers to build agile and efficient business networks that will be models for all others to follow.”

In a December 2009 report, The Impact of a GXS/Inovis Merger, Forrester Research(1) stated, “A forward-looking strategy is driving the merger. Most enterprises are looking for a wide range of integration solutions from a single vendor, and the ability to obtain these services via multiple channels — software licenses, managed services, [software-as-a-service] SaaS-based software solutions, and cloud computing alternatives — is becoming increasingly important. GXS’ and Inovis’ combined resources will be able to deliver these types of flexible integration solutions better than either provider could on its own.”

All products and services provided by GXS and Inovis today will continue to be maintained and supported. In addition, all customers should be assured that any efforts to combine overlapping services in the future will be where practical and beneficial to customers. As demonstrated with numerous previous acquisitions, GXS has the proven ability to combine platforms transparently and with little-to-no service impact.

Francisco Partners and its co-investors, Golden Gate Capital, Cerberus and Norwest Venture Partners, will own the combined company with Francisco Partners retaining the controlling interest. Combination of the local entities in the United Kingdom remains under regulatory review and will proceed in accordance with local laws.

More details about the merger of GXS and Inovis, including a questions and answer document, can be found at www.gxs.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.