TechnologyGeneral Electric sells off B2B arm

General Electric sells off B2B arm

US technology giant General Electric has sold its business-to-business e-commerce company in a deal worth around $800m (£533m).

GE Global eXchange Services has been sold to buy-out fund Francisco Partners which said it plans to acquire other companies and staff to build up the ailing GXS brand.

With a presence in 58 countries, GXS has engineering teams in the US, Ireland, the UK, India and the Philippines. More than 100,000 trading partners use GXS, which has a customer list that includes Eastman Kodak, DaimlerChrysler and 3M.

Harvey Seegers, current president and CEO of GXS, will continue to lead the company and GE will retain a 10% ownership stake in the firm.

Seegers believes GXS will prosper as a part as a part of the Francisco Partners portfolio. ‘When you’re a small part of a big company, you’re almost always standing at the end of the line when capital requests are being considered. In this particular case, at a technology fund, you’re almost always at, or near, the front,’ he said.

Francisco will acquire access to over 100,000 trading partners currently operating with GXS, including 60% of Fortune 500 firms, General Electric said.

The deal will be closed by 31 October and the divestiture is expected to result in a pre-tax gain of approximately $500m to GE, the company said.

Francisco Partners is a voracious acquirer of technology companies. It claims that over the last five years to have invested in excess of $1bn in more than 20 technology and technology-related companies with a combined enterprise value exceeding $4bn.

The company specializes in taking over subsidiaries of major corporations that are no longer considered core by their parents. Francisco Partners then provides what it calls ‘transformational capital’ to try and create a thriving concern.

Related Articles

Riding the wave of digital accounting

Technology Riding the wave of digital accounting

2w Xero | Sponsored
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2w Alia Shoaib, Reporter
Deloitte cyber-attack: Is your firm safe?

Security Deloitte cyber-attack: Is your firm safe?

3w Alia Shoaib, Reporter
What to expect from GDPR

Legal What to expect from GDPR

2m Alia Shoaib, Reporter
Making Tax Digital – still full steam ahead?

Making Tax Digital Making Tax Digital – still full steam ahead?

3m Margaret Curran
A brief guide to Making Tax Digital

MTD A brief guide to Making Tax Digital

1m Clear Books | Sponsored
Four reasons why tech investment is critical for accountants

Technology Four reasons why tech investment is critical for accountants

2m Emma Smith, Managing Editor
Artificial intelligence and machine learning – the inevitable changes in professional service firms

Technology Artificial intelligence and machine learning – the inevitable changes in professional service firms

2m Andrew Griggs