Francisco Partners acquires GE Global eXchange Services

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Menlo Park, Calif.--Tech buyout firm Francisco Partners announced Monday an agreement with General Electric Co., Fairfield, Conn., to acquire for $720 million 90% of GE's b-to-b e-commerce company, GE Global eXchange Services. GE Global eXchange Services boasts more than 100,000 trading partners and uses its e-commerce trading platform to improve the efficiency of corporate supply chains. GXS says its customer base includes more than 60% of the Fortune 500 and their respective supplier communities. The transaction is expected to close by Oct. 31. Harvey Seegers, current president and CEO of GE Global eXchange Services, will continue to lead the company. GE will retain a 10% ownership stake in GXS. "GXS does not fit GE's core services and growth strategies,” Gary Reiner, GE’s senior VP-CIO said in a statement. The divestiture is expected to result in a pre-tax gain of approximately $500 million to GE.
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