MENLO PARK, Calif. & FAIRFIELD, Conn.--(BUSINESS WIRE)--Sept. 27, 2002--Francisco Partners, the world's largest technology buyout fund, and GE today announced the completion of Francisco Partners' acquisition of GE Global eXchange Services, a business-to-business (B2B) e-commerce leader.
Global Exchange Services (GXS), as the company will be known, will operate as an independent, privately-held business based in Gaithersburg, MD. Harvey Seegers, currently president and CEO of GXS, will continue to lead the company.
GXS operates one of the largest B2B e-commerce networks in the world, with more than 100,000 trading partners. GXS provides e-commerce solutions that help businesses improve the quality, velocity and efficiency of their supply chains. GXS's global customer base includes more than 60% of the Fortune 500 and their respective supplier communities.
GE retains a 10% interest in GXS and has provided GXS with $235 million of senior subordinated notes through GE Capital Corporation. GE will recognize an after-tax gain of approximately $300 million in the third quarter as a result of the transaction, which values GXS at approximately $800 million.
About Francisco Partners
With $2.5 billion in committed capital, Francisco Partners is the world's largest technology focused buyout fund. The firm has built one of the industry's most experienced teams focused on structured investments in technology and technology-related businesses. For more information, visit the company's Web site at http://www.franciscopartners.com.
About Global eXchange Services (GXS)
Global eXchange Services operates one of the largest B2B e-commerce networks in the world, with more than 100,000 trading partners. The network's 1 billion annual transactions account for $1 trillion in goods and services. For more information, visit the company's Web site at http://www.gxs.com.
About GE
GE (NYSE: GE) is a diversified technology and services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.
Caution Concerning Forward-Looking Statements
This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in GE's filings with the Securities and Exchange Commission.
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CONTACT:
For Francisco Partners
Doug Donsky of Edelman Financial
212/704-4473
or
For Global Exchange Services
Reid Walker, 301/340-5985
or
For General Electric
David Frail, 203/373-3387