Vastera and Ford Motor Company Announce Merger in Global Trade Management

Strategic Insights -

Vastera, a leading provider of solutions for global trade management, has announced a significant merger with Ford Motor Company's U.S. Customs Operations. The partnership, which includes a 10-year agreement, enables Vastera to provide Ford with global trade managed services, including managing import and export trade processes in the United States. The merger is subject to receipt of required regulatory approvals.

The strategic alliance marks a significant milestone in the global trade management industry, bringing together Vastera's expertise in import/export and advanced technologies with Ford's extensive experience in automotive trade. The partnership aims to provide a full-service approach to trade management, leveraging Ford's global customs operations and Vastera's TradeSphere solutions.

Key Takeaways:

  • Vastera will merge with Ford Motor Company's U.S. Customs Operations in exchange for shares of common stock in Vastera.
  • The partnership involves a 10-year agreement under which Vastera will provide Ford with global trade managed services, including managing import and export trade processes in the United States.
  • Vastera intends to utilize Ford's existing technology and intellectual capital to expand its managed service offerings to a variety of companies on a global basis.
  • Arjun Rishi, CEO of Vastera, stated that this arrangement with Ford reflects a growing trend in the industry toward a new delivery model for managed services.
  • Ford operates 112 plants in 25 countries, making it one of the top importers/exporters in the world.
  • Vastera's TradeSphere solutions will be used to manage Ford's global trade functions, including import and export processes, and facilitate collaboration between carriers, forwarders, brokers, banks, and customs agencies.

Statistics:

  • Ford has approximately 335,000 employees worldwide.
  • Vastera clients include: Dell, Microsoft, Sun, New Zealand Dairy Board, Lucent Technologies, United States Postal Service, CatalogCity.com, RightFreight.com, Herman Miller, and Motorola.
  • Vastera has received numerous industry awards recognizing its rapid growth, including Computerworld Magazine's list of "100 Emerging Companies to Watch in 2000" (eCommerce category), the Deloitte & Touche "Fast 500", and the INC. 500.

Sources:

  • Business Wire: "Vastera and Ford Motor Company Announce Merger in Global Trade Management" (July 25, 2000)
  • Vastera Press Release: "Vastera and Ford Motor Company Announce Merger in Global Trade Management" (July 25, 2000)