San Mateo, CA — June 13, 2003 — TradeBeam has acquired Qiva in a move that at least one analyst said would provide the company with critical functionality needed to meet its goal of becoming a top provider of global trade management solutions and services.
The transaction was for an undisclosed amount of cash.
Qiva reportedly spent more than $50 million developing solutions to help its customers manage their global logistics and compliance activities. Before it shut down in early April (see related story) Qiva's customers were predominantly in the high-tech and retail markets, including such companies as Aspect Communications, Brocade, W.W. Grainger, JDS Uniphase, Liz Claiborne, Memec and The Neiman Marcus Group
"The acquisition provides TradeBeam with international trade logistics (ITL) functionality, solidifying the company as a leader in the global trade management space," said Graham R F Napier, TradeBeam's CEO. "Qiva brings the company premier capabilities for the high-tech and retail industries."
John Fontanella, a vice president at technology consultancy AMR Research, wrote in a research note this week that the deal gives TradeBeam key supply chain execution components, "functionality that is necessary for the company to meet its goal of becoming a leader in global trade management. The Qiva purchase allows TradeBeam to continue building out end-to-end global trade functionality with stronger order management and compliance capabilities."
TradeBeam has not garnered a great deal of attention, but Fontanella notes that the provider has quietly managed to acquire some 40 customers over the past year, primarily in high-tech manufacturing, retail, freight forwarding and distribution services, "growth that is worthy of note," the analyst added, "given the lackluster performance of the enterprise software market the past two years."
Adds Fontanella, "It also shows the need for scaleable and cost-effective applications and services that specialize in managing the physical, informational and financial flow of goods that are being imported and exported to and from offshore locations."
According to TradeBeam, the Qiva acquisition is highly complementary to the provider's business plan and reflects the increased level of consolidation in the market today. Fontanella agrees with the later assertion, writing, "Like the acquisition of Celarix by GXS last week [see related story], the Qiva purchase is another indication that visibility and transaction management is a necessary component of supply chain management, but that its value is magnified when it is incorporated into a broader platform of services."
TradeBeam, whose other target vertical include aerospace and defense, automotive and oil and gas, says it is in a strong cash position and has the market traction it needs to become the leader in its market. The provider competes in the global trade management space with such companies as Arzoon, Nextlinx, Open Harbor, Precision Software and Vastera.
For more information on transportation management systems, see the Global Enabled Supply and Demand Chain Series article on this space in the upcoming June/July 2003 issue of iSource Business.
For more information on how companies are using global trade management solutions to increase their supply chain security, see the Net Best Thing article in the upcoming June/July 2003 issue of iSource Business.