Enter the Leaders of GTM

While many eyes are still on the consolidation of the mainstream enterprise resource planning (ERP) market, the end of 2004 and the beginning of 2005 also have seen the acquisition moves of two prominent players in the global trade management (GTM) market to streamline the entire life cycle of a global trade and make cross-border transactions more efficient. Providing solutions that integrate the physical and financial supply chains by more holistically optimizing the "procure-to-pay" and "order-to-cash" cycles for global corporations appears to no longer be mere buzzwords and concepts.

Two of these acquisitions are JPMorgan Chase Bank, N.A. (NYSE: JPM) and Vastera (NASDAQ: VAST) ; and TradeBeam Holdings, Inc., and Open Harbor.

Part four of the Will 2005 Validate the Realm of GTM—Unifying Financial and Physical Supply Chains? series

JPMorgan Chase Bank Acquires Vastera

On January 7, JPMorgan Chase Bank, N.A.(NYSE:JPM), a leading global financial services firm with assets of $1.1 trillion (USD) and operations in more than 50 countries signed an Agreement and Plan of Merger with Vastera (NASDAQ: VAST), the only publicly traded software company that focuses on global trade. With services including software, managed services, global trade content, education, and high-end consulting services, Vastera was deemed a desirable complement to the Logistics and Trade Services business of JPMorgan Chase's Treasury unit.

The Treasury Services unit is a top-ranked, full-service provider that meets the needs of corporations, financial services institutions, middle market companies, small businesses, governments and municipalities worldwide. Its services include innovative payment, collection, liquidity and investment management, trade finance, commercial card, and information solutions. With more than 50,000 clients and a presence in 36 countries, it is the world's largest provider of treasury management services. Under the Agreement and Plan of Merger, Vastera shareholders will receive $3.00 (USD) for each outstanding share of Vastera common stock they own, for a total transaction value of approximately $129 million (USD), about 50 percent premium over the annual revenue of Vastera.

Vastera's solutions automate the required trade management processes associated with the physical movement of goods internationally. The acquisition should further provide JPMorgan Chase clients with a "one-stop shop" service that addresses the increasing challenges and risks associated with international trade. The JPMorgan Chase solution currently facilitates the seamless management of information and processes to support the movement of physical goods and financial settlement of the complete global trade process. With the services of Vastera, JPMorgan Chase boasts it will be the first global financial institution to offer a complete, integrated cash, trade, and logistics solution across the physical and financial supply chains in a way that would maximize benefits to its clients.

Previous to the acquisition, Vastera had an extensive working relationship with JPMorgan Chase by providing GTM solutions. Now the two tout to be able to build on that relationship as part of the same firm, in a broader GTM infrastructure, to bring tangible benefits to clients of both formerly independent companies. This acquisition should give current JPMorgan Chase's clients the benefits of broader GTM solutions. In tturn Vastera's clients will receive the benefits of JPMorgan Chase's comprehensive financial services platform and product set. Vastera will continue to independently market its software and services, but much more growth opportunity is expected from bundling Vastera's software and services with JPMorgan Chase's offerings.