French e-procurement specialist CC-Hubwoo has signed a memorandum of understanding with Trade Ranger which plans for the acquisition, by CC-Hubwoo, of Trade Ranger before the end of the year. The value of the transaction is between $12 and $23 million-worth of CC-Hubwoo stock and cash, contingent upon the future value of Trade Ranger’s contracts, working capital and cash.
Trade-Ranger is an electronic marketplace specializing in providing e-procurement solutions for the oil, gas and chemicals industries. Trade-Ranger’s customer base includes ConocoPhillips, ENI, Repsol YPF, Shell, Statoil, and Total. CC-Hubwoo, created in July 2004 by the merger of Hubwoo-Avisium and cc-Chemplorer, provides on-demand electronic procurement solutions and MRO supplier network management to companies like Total, BASF, EDF, Michelin and Volkswagen. CC-Hubwoo manages a network of more than 8,500 connected suppliers in 44 countries and posted pro-forma sales in excess of € 22 million (Euro) in 2003.
Trade Ranger president and CEO John Wilson said, ‘We have successfully proved the concept of e-procurement in a variety of experiments and pilot projects. The company has fulfilled its original mission to connect a group of powerful buying organizations with a growing pool of global suppliers. It is time now to build a company with more diverse offerings to meet the growing expectations of our customers. The combination of our two companies will create one of the world’s largest electronic trading and catalogue content hubs for indirect materials, leading the trend in the consolidation of marketplaces.’
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