Ford's Customs Operations To Merge With Vastera
25 July 2000
Companies' Sign 10-Year Managed Services Agreement
DULLES, Va. - Vastera, a leading provider of solutions for global trade management and Ford Motor Company have announced that Ford's U.S. Customs Operations will merge with Vastera in exchange for shares of common stock in Vastera.Vastera and Ford also have entered into a 10-year agreement under which Vastera will provide Ford with global trade managed services, including managing Ford's import and export trade processes in the United States.
Under the terms of the agreement, Ford's Customs Operations will be merged into Vastera's Trade Management Services Operation. Vastera intends to utilize Ford's existing technology and intellectual capital to expand Vastera's managed service offerings to a variety of companies on a global basis. Completion of the merger is subject to receipt of required regulatory approvals.
"When you combine Vastera's import/export expertise and advanced technologies with Ford's extensive experience in automotive trade, the synergy provides a full service approach to trade management," said Frank Taylor, Vice President of Material Planning and Logistics at Ford. "We look forward to our equity partnership with Vastera, our lead Customs service provider, and to enabling the introduction of a world-class managed trade enterprise offering to the marketplace."
"We are extremely pleased to welcome the highly-skilled members of Ford's U.S. Customs Operations to Vastera," said Arjun Rishi, CEO of Vastera. "We believe the addition of Ford's Global Customs Operations provides Vastera with the infrastructure and capabilities to expand these services to other organizations."
Rishi added that this arrangement with Ford reflects a growing trend in the industry toward a new delivery model for managed services. "Senior executives in multiple sectors of global e-commerce are beginning to indicate a desire to have their global trade processes administered as a comprehensive managed service," he said.
Ford operates 112 plants in 25 countries making it one of the top importers/exporters in the world. Ford historically has managed its global trade processes internally and has developed many information technology systems to manage global trade functions. Vastera intends to leverage its technologies and expertise to manage Ford's global trade functions including import and export processes. In addition, Vastera intends to use its TradeSphere solutions for global trade to enable collaboration between carriers, forwarders, brokers, banks and customs agencies to maximize the speed and quality of services and minimize total landed costs, thus leveraging preferential programs worldwide.
"This agreement with Ford validates our belief that the effective management of global trade processes is a critical element of e-business for global companies," said Rishi. "We regard this decision by Ford Motor Company, fourth in the Fortune 500, as another validation of Vastera's ability to deliver our global trade content, software applications and expertise as a managed application service for companies of all sizes."
About Ford Motor Company
Ford Motor Company is the world's largest manufacturer of trucks, and second largest manufacturer of cars and trucks combined, whose divisions include Ford, Lincoln, Mercury, Volvo, Mazda, Jaguar, Aston Martin and Land Rover. Ford has approximately 335,000 employees worldwide.
About Vastera
Vastera's global trade management solutions are designed to automate and streamline the trade functions of global e-business. Vastera's global trade management solutions include modular, web-based applications, management consulting and solution services. The foundation of these solutions is Global eContent, a comprehensive, electronic library of country-specific trade and regulatory data, which is maintained and updated daily. Established in 1992, 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. Vastera clients include: Dell, Microsoft, Sun, New Zealand Dairy Board, Lucent Technologies, United States Postal Service, CatalogCity.com, RightFreight.com, Herman Miller and Motorola.