External FAQ RollStream ACQUISITION

Transcription

1 External FAQ RollStream ACQUISITION On March 29, 2011, GXS announced they had acquired RollStream, a SaaS provider of enterprise community management. Table of Contents The Basics... 2 Q1. What is the rationale for the acquisition?... 2 Q2. What are the terms of the transaction?... 2 The Business / Product Strategy... 2 Q3. What are the market trends related to this acquisition?... 2 Q4. What is the social supply chain and how does it relate to this acquisition?... 3 Q5. What are the most immediate strategic opportunities for the combined company?... 3 Q6. Who uses RollStream today? What markets does RollStream serve?... 3 Q7. Are there any overlaps in the products and services between the two companies?... 4 Q8. What does each company offer to the new organization that is unique and exciting?... 4 Q9. How will RollStream customers benefit from the acquisition?... 4 Q10. How will GXS customers benefit from the acquisition?... 5 Q11. What is the CPSIA Certificate Exchange?... 5 How the Companies Will Operate... 5 Q12. What should customers expect regarding the continuity of their existing services and support?... 5 Q13. Can customers purchase RollStream products and services?... 5 Q14. Where is RollStream located?... 6 Q15. What about the RollStream team? Are they all joining GXS?... 6 Q16. Will the businesses operate separately? When can we expect integration?... 6 For More Information... 6 Q17. Where can I go to get more information about the acquisition?... 6 Cautionary statement regarding forward looking statements FAQ GXS / RollStream Acquisition For External Use

2 The Basics Q1. What is the rationale for the acquisition? This acquisition advances GXS s strategy to speed and simplify the integration of global business communities. By combining RollStream with GXS Trading Grid, the world s largest integration cloud, GXS expects to significantly enhance the performance of global business and supply chain operations for our customers. The acquisition deepens GXS s long term commitment to Social Supply Chain, a vision that brings together information flows and information workers to radically break down longterms barriers hampering supply chain efficiency. GXS provides the scale to deliver the RollStream capability globally, building upon the companies successful business partnership that began in Using RollStream, procurement teams at companies like Tesco, Owens & Minor and MedImmune simplify the human side of B2B integration, minimizing supplier compliance risk and improving supplier time to market by up to 60%. The GXS RollStream service is available today and will be internationalized and available with local language support by Q To learn more, see or rollstream@gxs.com. Q2. What are the terms of the transaction? The acquisition was closed on March 28, Although GXS is a public registrant with the Securities and Exchange Commission (SEC), the company is not required to disclose the terms of this transaction. RollStream was also a privately held corporation. The Business / Product Strategy Q3. What are the market trends related to this acquisition? Humanizing the supply chain is top of mind for many companies, driven by increasing complexity in B2B integration: Doubling Transactions: B2B transactions in Global 2000 organizations are expected to double between 2010 and 2015, according to Gartner. 1 Blurring Boundaries: Integration is no longer a project between two applications. It is a cross company and between company discipline that increasingly involves all of an organization's applications, external business partners and cloud services, according to Gartner. 2 Collaboration Matters: 75% of supply chain execs said ease of community management is an important factor when considering their EDI/B2B operations, according to Forrester Consulting. 3 1 Gartner "Market Trends: Multienterprise/B2B Infrastructure Market, Worldwide, , 1Q11 Update. 2 Ibid. 3 Source: Forrester Consulting, Q Global EDI/B2B Survey. Page 2 of 7

3 Path to Profits: Companies using Web 2.0 technologies intensively to extend the organization s reach to customers, partners, and suppliers are more likely to be market leaders, gain market share and have higher margins than those using the Web in more limited ways, according to McKinsey. 4 Q4. What is the social supply chain and how does it relate to this acquisition? Across companies of all types, social consumer IT services are making their way into the enterprise. These capabilities are often summed up under an umbrella of Enterprise 2.0 or Social Business, with microblogs (Yammer, Twitter), crowdsourcing (Dell s IdeaStorm, MyStarbucksIdea), and social networks (Facebook) used as mainstream elements of customer programs. For years, both RollStream and GXS have been leading the way in putting the people in control of the B2B process. Social Supply Chain is GXS s long term vision that brings together information flows and information workers to radically break down long terms barriers hampering supply chain efficiency. Within the Social Business landscape, the Social Supply Chain category is a promising element, according to Dachis Group, the world s largest social advisory group: companies such as [GXS] have been proving out what is possible when you bring social computing to the supply chain. I explored social supply chains in detail recently and while it s still in early stages, those who are using it are achieving significant benefits. At this point, social supply chain will be well in the adoption phase in months. 5 Q5. What are the most immediate strategic opportunities for the combined company? Near term, GXS and RollStream can help customers in three areas: Accelerating partner onboarding cycle times, and speed to revenue. Enabling always accurate partner contact information through self service access. Minimizing compliance risk, with solutions like the CPSIA Certificate Exchange Network (CEN). Q6. Who uses RollStream today? What markets does RollStream serve? RollStream serves large enterprises in healthcare, consumer products, and manufacturing in North America and Europe. Here are some examples: Owens & Minor, a Fortune 500 company and distributor of medical surgical supplies, uses RollStream to manage more than 1200 suppliers and to support 300 field sales reps. Sainsbury's, the third largest supermarket chain in the UK, uses RollStream to deploy and audit new trading terms with more than 6,000 suppliers in accordance with Groceries Supply Code of Practice (GSCOP) regulations. Tesco Stores, the UK s leading grocer and world's third largest retailer, uses RollStream to streamline supplier management and reduce the cost and time to 4 McKinsey "The rise of the networked enterprise: Web 2.0 finds its payday," December advent of the social supply chain/ Page 3 of 7

4 onboard new suppliers by 50%. MedImmune, the global biologics division of Astra Zeneca, uses RollStream for legal and regulatory compliance and responsible purchasing initiatives with their suppliers. A global security company uses RollStream to track and monitor electronic Subcontractor Reporting System (esrs) compliance. A leading distributor of medical supplies and equipment uses RollStream to improve profile data and streamline supplier communications. Q7. Are there any overlaps in the products and services between the two companies? The companies solutions are very complementary. GXS has been a reseller partner of RollStream since Q8. What does each company offer to the new organization that is unique and exciting? While both companies are focused on B2B integration services, GXS and RollStream both bring unique and complementary advantages: GXS s global reach. With more than 40,000 customers across 61 countries and half of our revenue coming from outside the US, GXS is the largest integration services provider. The GXS Trading Grid is recognized as the industry s largest integration cloud platform, managing more than 10 billion transactions a year. RollStream s social B2B approach. For years, RollStream has focused on humanizing the B2B supply chain, enabling companies to integrate data flows from people, applications and systems to improve B2B integration processes. Customer focused software development. Both companies leverage the Agile software development methodology to deliver new capabilities to customers, leveraging the short cycle times (2 3 week) to quickly roll out customer ready features onto softwareas a service (SaaS) platforms. RollStream also leverages Ruby on Rails, an open source software development framework that shortens the time to deliver web applications. Q9. How will RollStream customers benefit from the acquisition? RollStream customers gain access to the following GXS capabilities: Market Leading Integration Platform. RollStream customers gain access to the GXS Trading Grid, the industry s largest B2B integration platform with more than 100,000 trading partners directly connected, enabling easy expansion of their e commerce programs. 24x7x365 Global Services. RollStream customers gain access to GXS s international service capabilities to support worldwide trading partner programs, including local language support, local community management support, and internationalized technology enablement options, such as GXS Intelligent Web Forms. B2B Industry Peer Collaboration. RollStream customers can participate in GXS s customer feedback and industry support programs, including advisory councils, special interest groups and product user groups. Page 4 of 7

5 Q10. How will GXS customers benefit from the acquisition? GXS customers gain access to RollStream s SaaS platform to improve their community management programs: Accelerating partner onboarding cycle times, and speed to revenue. GXS customers can use RollStream to speed up the rollout of supply chain programs. A medical/surgical distributor reduced supplier project rollout times by 50%, from 3 4 weeks to 1 2 weeks, for more than 60 projects a year. A global retailer gained $1.4M net new revenue by shortening supplier registration by 30 days. Enabling always accurate partner contact information through self service access. GXS customers can use RollStream as their always accurate, rolodex in the cloud. A large sporting goods retailer saw 100% of their 200 suppliers adopt their RollStream service within 60 days to manage RMA processes and catalogue proof workflows, and praised the Facebook like profiles of all merchandising members and vendors. Minimizing compliance risk. GXS customers can use RollStream to maintain easy access to their partners critical compliance certificates, and participate in solutions like the CPSIA Certificate Exchange Network (CEN). Q11. What is the CPSIA Certificate Exchange? More than 45 manufacturers, distributors and retailers use RollStream to share their certificates of conformance showing their products comply with the Consumer Products Safety Improvement Act (CPSIA). The service enables all organizations to have full visibility in to the conformity of the products they sell, and that they can produce the necessary documentation on demand. RollStream and the National Association of Chain Drug Stores (NACDS) joined forces to deliver the CPSIA Certificate Exchange Network (CEN), an online source for posting or linking to existing certificates of conformity. For more, see the FAQ on this site: How the Companies Will Operate. Q12. What should customers expect regarding the continuity of their existing services and support? Near term, there will be no immediate changes, and all existing RollStream services will continue to be provided, maintained and supported. Long term, customers can expect more functionality and tighter integration into GXS products and services, driven by increased R&D investment. We will provide additional details regarding our long term product plans within 60 days of the acquisition Q13. Can customers purchase RollStream products and services? Yes, absolutely. The GXS RollStream service is available today and will be Page 5 of 7

6 internationalized and available with local language support by Q Q14. Where is RollStream located? Both companies are based in the Washington DC area. RollStream is headquartered in McLean, Virginia while GXS is headquartered in nearby Gaithersburg, Maryland. Q15. What about the RollStream team? Are they all joining GXS? Most of the RollStream team, including Nick Parnaby, RollStream s co founder and COO, and teams from software development, professional services, and customer service will be joining GXS and continuing to work with the RollStream solution and customers as capabilities are integrated into GXS s global business. Kerry Lenahan will continue to oversee product management and marketing for the GXS RollStream offering and will oversee accelerated investment in the product. Members of the RollStream sales organization will move under GXS S Global Sales organization. Kristin Muhlner, RollStream s CEO, will not be joining GXS and has elected to pursue outside projects. Q16. Will the businesses operate separately? When can we expect integration? The two businesses will be quickly integrated, with the GXS RollStream solution becoming part of the GXS portfolio and integrated into the GXS Trading Grid platform. GXS will continue to service and support all RollStream services offered today. Where practical and beneficial to customers, the combined company will integrate offerings that overlap in functionality. The goal of any integration activity will be to ensure that customers experience a well informed, seamless, managed transition. For More Information Q17. Where can I go to get more information about the acquisition? To learn more, see or rollstream@gxs.com. Support: GXS customers can call customer support at (Outside US: ) or support@gxs.com. RollStream customers can call or or info@rollstream.com. Media: For media or other third party inquires about the acquisition, please contact Doug Kern at or doug.kern@gxs.com. GXS on LinkedIn RollStream on LinkedIn Page 6 of 7

7 Cautionary statement regarding forward looking statements. This document is for information purposes only and may not be incorporated into a contract. It contains forward looking statements about GXS and RollStream and includes statements that cannot be guaranteed, but are intended to provide directional accuracy regarding the future operations of the combined organization. Page 7 of 7