General Electric Company
30 September 2002
Francisco Partners Completes Acquisition of Global eXchange Services From GE
Menlo Park, Calif. and Fairfield, Conn., September 27, 2002 -
Francisco Partners, the world's largest technology buyout fund, and GE today
announced the completion of Francisco Partners' acquisition of GE Global
eXchange Services, a business-to-business (B2B) e-commerce leader.
Global Exchange Services (GXS), as the company will be known, will operate as an
independent, privately-held business based in Gaithersburg, MD. Harvey Seegers,
currently president and CEO of GXS, will continue to lead the company.
GXS operates one of the largest B2B e-commerce networks in the world, with more
than 100,000 trading partners. GXS provides e-commerce solutions that help
businesses improve the quality, velocity and efficiency of their supply chains.
GXS's global customer base includes more than 60% of the Fortune 500 and their
respective supplier communities.
GE retains a 10% interest in GXS and has provided GXS with $235 million of
senior subordinated notes through GE Capital Corporation. GE will recognize an
after-tax gain of approximately $300 million in the third quarter as a result of
the transaction, which values GXS at approximately $800 million.
About Francisco Partners
With $2.5 billion in committed capital, Francisco Partners is the world's
largest technology focused buyout fund. The firm has built one of the industry's
most experienced teams focused on structured investments in technology and
technology-related businesses. For more information, visit the company's Web
site at http://www.franciscopartners.com.
About Global eXchange Services (GXS)
Global eXchange Services operates one of the largest B2B e-commerce networks in
the world, with more than 100,000 trading partners. The network's 1 billion
annual transactions account for $1 trillion in goods and services. For more
information, visit the company's Web site at http://www.gxs.com.
GE (NYSE: GE) is a diversified technology and services company dedicated to
creating products that make life better. From aircraft engines and power
generation to financial services, medical imaging, television programming and
plastics, GE operates in more than 100 countries and employs more than 300,000
people worldwide. For more information, visit the company's Web site at http://
Caution Concerning Forward-Looking Statements
This document includes certain 'forward-looking statements' within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations and are subject to uncertainty and
changes in circumstances. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors. More detailed information about
those factors is contained in GE's filings with the Securities and Exchange
For Francisco Partners
Doug Donsky of Edelman Financial
For Global Exchange Services
Reid Walker, 301/340-5985
For General Electric
David Frail, 203/373-3387
This information is provided by RNS
The company news service from the London Stock Exchange