The four founding partners of the recently created Aerospace and Defense Global Trading Exchange have announced that they have signed a definitive agreement and are planning to launch the web-based exchange by the end of September. They also announced ‘Exostar’ as the name of the new company.
The international headquarters for the business-to-business (B2B) exchange will be located in the metropolitan Washington, DC area with a significant presence in Europe and Asia. In addition, Exostar’s web site (www.exostar.com) has been activated. This informational web site will become the site for all transactions when the exchange becomes operational in September.
Initial partners in the Exostar venture includes BAE Systems, Boeing, Lockheed Martin Corporation, and Raytheon Company. Commerce One serves as the core technology provider for the exchange. Other aerospace and defense suppliers and buyers around the world are invited to participate.
The four current participants do business worldwide with more than 37,000 suppliers, hundreds of airlines and nearly every national government for a total combined procurement outlay of $71 billion. The aerospace and defense industry has total sales of more than $400 billion worldwide.
Exostar has selected Andersen Consulting as the lead business advisor and systems consultant to help build key business, technology, and organizational capabilities.
Under terms of the definitive agreement, each founding partner has agreed initially to take equal ownership stakes in Exostar. Adjustments to this allocation will be based on each partner’s use of the exchange over the first three years.
Implementation of products and services will take place through a phased approach beginning with non-production purchasing. Additional services including purchasing of production parts, auctions, collaboration services, management tools and financial services will be implemented as developed.