Francisco Partners, the world’s largest technology buyout fund, today announced a definitive agreement with General Electric Company to acquire GE’s business-to-business (B2B) e-commerce company, GE Global eXchange Services (GXS).
Harvey Seegers, current president and CEO of GE Global eXchange Services, will continue to lead the company, which will become part of the portfolio of technology businesses owned by Francisco Partners. GE will retain a 10% ownership stake in GXS.
GE Global eXchange Services is said to operate one of the largest B2B e-commerce networks in the world, with more than 100,000 trading partners. GXS’s extensive global customer base includes more than 60% of the Fortune 500 and their respective supplier communities.
Francisco Partners specialises in buyout and recapitalisation investments in technology companies, targeting majority and minority investments in private and public companies, with transaction values ranging from $50 million to in excess of $2 billion.
The boards of directors of both companies have approved the agreement, and the transaction, which is likely to result in a pre-tax gain of approximately $500 million to GE, is expected to close by October 31, 2002.