E2open Signs Deal for Acquisition of Amber Road

The $425 Mn acquisition of Amber Road by E2open is an all-cash transaction. As per the agreement, E2open will pay $13.05 per share.

US provider of cloud-based, on-demand software for supply chains, E2open has agreed to acquire Amber Road, an American provider of global trade management solutions, for a roughly $425 Mn. For Amber Road common stock’s all outstanding shares, E2open will start off with a tender offer for $13.05 per share in cash, as per the terms of the deal. Amber Road shareholders are recommended by the company’s board to tender their shares in the offer. The definitive agreement was given the green signal by the board unanimously. E2open and Amber Road expect the deal to see closure by Q3 fiscal 2019.

“In joining forces, our company envisions a solution suite showing accelerated innovation for operating, streamlining, and connecting every aspect of global compliance, trade, distribution, logistics, manufacturing, and sourcing, resulting in quick benefits for all stakeholders. Amber Road has transformed the way in which organizations handle global trade and cemented itself as the thought leader in this space. We believe that the combination of end-to-end networked supply chain solutions by E2open and Amber Road’s advanced supply chain and trade management capabilities will further drive operational efficiency and flexibility, lower risks, and improve margins for our customers,” said E2open’s President and CEO, Michael Farlekas (source).

The acquisition will benefit E2open with integrated trade management solutions and more

With the acquisition of Amber Road, E2open will see its portfolio extended with integrated trade management solutions, rich trade content information services, and comprehensive sourcing solutions. Furthermore, the acquisition will benefit E2open with a complementary network of global trade partners having customs filing capabilities. In addition, it will help with free trade agreement management and extensive duty deferral solutions for increasing margins.

“Combining Amber Road’s global trade management platform and E2open’s logistics and supply chain technologies will also enable customers for better competing in global markets and more fully digitalizing their operations. For Amber Road’s shareholders, the agreement will also deliver an exceptional return, as the price of $13.05 per share that is being paid by E2open is representative of an approximately 45% premium to the 90-day average closing price of Amber Road,” said Amber Road’s CEO, James Preuninger.