DOJ Approves GXS And Inovis Merger
Posted by Ken Vollmer on June 3, 2010
As of today, June 3, 2010, GXS (the largest B2B service provider in the world) and Inovis (number 3 in overall size) will begin operating as one entity under the name of GXS. The combined GXS entity will now have more than 40,000 B2B customers and will provide effective competition to the planned IBM/Sterling Commerce operation (which still needs regulatory approval to proceed). Sterling Commerce will remain the second-largest B2B service provider after GXS. The high level of M&A activity in this sector highlights the growing importance of B2B service providers in meeting the full range of enterprise needs that span end-to-end business processes that reach beyond the corporate firewall. Expect more M&A activity in this sector during the coming months.
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DOJ
I see nothing from DOJ or FTC that verifies this. The company has not cleared HArt, scott, Rodino. They are being considered for Title II status via the FCC Division of Wireline Competition (Common Carrier), and are being targeted by the formation of a new class action being formed by competitive VANs that have been disadvantaged by GXS thorough actions of interconnection arbitrage (the denial of non-settlement interconnection between network peers).
DOJ Approval
GXS has been granted "early termination" from the premerger review process. This means that the U.S. government has completed its review of this transaction. Refer to the following FTC site: http://www.ftc.gov/bc/earlyterm/index.shtml.
Early release not the whole story
The FTC early termination only means that GXS merger has not been deemed a influencer of end user pricing and market controls, but the USDOJ continues its HSR and Anti-Trust investigation, the FCC Wireline Bureau is taking filings from aggrieved parties, and this is not over by a long shot.
The number of allied trades members that see this as a damaging event are legion. Forresteer would do well to dig deeper.
The GXS/Inovis Deal Has Been Consumated
According to the internal and outside lawyers at GXS (that I just spoke with), this merger has been officially consumated and there are no outstanding FTC/DOJ issues that they are aware of. Final approval in the UK is still pending from the OFT.