Tradex Technologies

TRADEX Technologies Inc. was a venture-backed company that became a leading provider of B2B marketplace e-commerce exchange solutions in 1999.[1] Entirely Java-based, its product TRADEX Commerce Center was an out-of-the-box software and enabled the streamlining of processes like real-time online negotiation, bidding and the secure transaction of orders from computer dealers and manufacturers.[1][2]

At the peak of the dot-com bubble in March 2000, Ariba Inc. acquired TRADEX in a stock-swap acquisition worth US$5.6 billion.[3]

Contents

History

The software was created in 1995 under the lead of the Swiss entrepreneur Daniel Aegerter as an Internet-based system for automating purchase processes for the suppliers and customers of his Swiss company Dynabit.[4][5] Subsequently, TRADEX Electronic Commerce Systems Inc. was incorporated in Tampa, Florida as a spin off from Dynabit.[4]

On the day of its launch, TRADEX offered a wholesale marketplace for the sale of new computer equipment with 40 vendors offering 15,000 products.[6] In 1996, TRADEX had gained 480 customers within three months[7] and soon had over 70 vendors and over 750 buyers in 58 countries.[8] Among TRADEX’s customers were Raytheon, Nippon Telegraph and Telephone (NTT), MetalSite, PlasticsNet,[1] VerticalNet, Electronic Data Systems (EDS),[9] American Express and Chemdex.[10] In 1999, TRADEX had 180 employees,[10] when it moved its headquarters to Atlanta, Georgia,[11] and it had further offices in Boston, Dallas, Tampa, San Francisco, Washington D.C., London and Tokyo.[1]

Investors

By September 1999, TRADEX had raised US$ 28 million from its investors Internet Capital Group,[12] Sigma Partners, Apex Investment Partners, Draper Fisher Jurvetson, First Analysis Corporation, Imlay Investments and United Parcel Service.[1]

Sale to Ariba

In December 1999, Ariba announced its acquisition of TRADEX in a stock-for-stock merger valued at US$1.86 billion[10] prior to its subsequent stock-splits.[13][14]

On March 10, 2000, the day when the NASDAQ Composite reached its highest level during the Internet boom, Ariba announced the successful completion of its TRADEX acquisition.[15] Ariba’s stock closing price on March 9, 2000, was US$ 320.88[16] and the TRADEX transaction was valued US$ 5.6 billion.[17]

Products

TRADE'ex offered 3 online procurement systems for connecting distributors with suppliers: one for the vertical trading hubs, another for large enterprises and a third for the distributor channel segment.[18] The software suite was scalable and had an object-based business engine incorporating CORBA and JavaBeans technologies.[18]

In 1997, the enterprise software products TRADE’ex Distributor and TRADE’ex Market Maker received the 100% Pure Java Certification from Sun Microsystems.[19] The software TRADE'ex Market Maker received an award from the Gartner Group and InformationWeek as the Best Business-to-Business Electronic Commerce Over the Internet solution at the 1996 Internet and Electronic Commerce show in San Francisco.[19]

See also

References

  1. ^ a b c d e "TRADEX Technologies Closes $12 Million in New Round Venture Funding". allBusiness (Business Wire). 24 April 1999. http://www.allbusiness.com/banking-finance/financial-markets-investing-securities/6745057-1.html. Retrieved 2011-08-23. 
  2. ^ Jones, Kevin (April 1999). "Digital Marketplaces: Enabling The Internet Economy". Net Market Makers, Whitepaper Analysis. http://www.globotron.com/htm/whitepapers/digitalmarketplace.pdf. 
  3. ^ TelecomWorldwire, "Ariba completes acquisition of Tradex; Enhances B2B eCommerce platform with addition of industry-leading marketplace solution", M2 Communications Ltd, March 14th, 2000.
  4. ^ a b Mohanbir Sawhney and Steven Kaplan, Edited by Jeffrey Davis (September 1999). B2B/Copy of models-b2b.htm "B2B Boom, Let's get Vertical". http://www.gwu.edu/~ibus266j/Global B2B/Copy of models-b2b.htm. Retrieved 25 August 2011. 
  5. ^ Moran, Susan. "The Enabler". Business 2.0. http://citebm.business.illinois.edu/emba/references/mod7/b2b_tradex.htm. Retrieved August 27, 2011. 
  6. ^ John A. Quelch, Readings in Modern Marketing, The Chinese University of Hong Kong, The Chinese University Press, 2006.
  7. ^ Ken Yamada, Online merchants find open market in Internet, Computer Reseller News, October 16, 1995.
  8. ^ "TRADE'ex Announces First Java Compliant Electronic Commerce Solution for Creating Wholesale Markets Over the Internet". PR Newswire. August 13, 1996. http://www2.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/25654&EDATE=. 
  9. ^ Internetnews.com, “EDS Debuts E.Procurement Marketplace”, November 12, 1999
  10. ^ a b c Melanie Austria Farmer, Ariba to expand Net market role with Tradex, CNet News, December 16, 1999
  11. ^ Caroline Hubbard, Net firm trades Tampa for Atlanta, Atlanta Business Chronicle, August 30, 1999.
  12. ^ Esther Dyson’s Monthly Report, Release 1.0, B2B Platforms, Edventure Holdings Inc, New York, September 13, 1999.
  13. ^ Larry Barrett (November 16, 1999). "Ariba Sets For 2 To 1 Stock-Split". CNET News. http://news.cnet.com/Ariba-sets-2-for-1-stock-split/2100-12_3-265865.html. Retrieved September 9, 2011. 
  14. ^ Larry Barrett (March 2, 2000). "Ariba Sets For Another 2 For 1 Stock-Split". CNET News. http://news.cnet.com/Ariba-sets-another-2-for-1-stock-split/2100-12_3-264959.html. Retrieved September 9, 2011. 
  15. ^ "Ariba Completes Acquisition of Tradex". Ariba Inc., Announcement. March 10, 2000. http://www.commerce-services.com/pdf/pr/aribaPR191.pdf. Retrieved September 8, 2011. 
  16. ^ "Internet Capital Group to Receive Approximately 1.45 Million Shares of Ariba Stock in Exchange for its Ownership Interest in Tradex". Business Wire. March 13, 2000. http://www.thefreelibrary.com/Internet+Capital+Group+to+Receive+Approximately+1.45+Million+Shares...-a060056932. Retrieved September 9, 2011. 
  17. ^ Caroline Wilbert, Some Entrepreneurs became Winners in Atlanta’s Dot-Com World, The Atlanta Journal-Constitution, September 10, 2001.
  18. ^ a b "Trade’ex Aims High With Procurement". InternetWeek.com. February 8, 1999.. http://www.internetwk.com/trends/trends020899-5.htm. 
  19. ^ a b "TRADE'ex Announces 100% Pure Java Certification for Distributor & Market Maker". The Free Library, Business Wire. July 23, 1997. http://www.thefreelibrary.com/TRADE'ex+Announces+100%25+Pure+Java+Certification+for+Distributor+%26...-a019603062. Retrieved 28 August 2011.