E2open announced Monday it has agreed to acquire East Rutherford-based Amber Road Inc. for $425 million.
Under terms of the deal, a subsidiary of Austin, Texas-based E2open will commence a tender offer for all of the outstanding shares of Amber Road common stock for $13.05 per share.
E2open is a cloud-based provider of networked supply chain solutions, it said. Amber Road’s cloud-based global trade management platform helps companies digitize their supply chain. E2open’s acquisition of Amber Road will allow its customers to operate their entire end-to-end supply chain from one place in the cloud, it said.
“The combination of E2open’s supply chain and logistics technologies with Amber Road’s global trade management platform will also allow customers to more fully digitize their operations and better compete in global markets. The deal will also deliver an excellent return for Amber Road’s shareholders, as the $13.05 price per share being paid by E2open represents roughly a 45% premium to Amber Road’s 90-day average closing price,” James Preuninger, CEO of Amber Road, said.
Once the deal has closed, which is expected before the end of the third quarter, Amber Road will become a privately-held company.
“In joining forces we envision a solution suite with accelerated innovation to connect, streamline, and operate all aspects of global sourcing, manufacturing, logistics, distribution, trade and compliance, resulting in immediate benefits for all stakeholders. Using a combination of enterprise-class software, intelligent trade content, and a global trade network, Amber Road has transformed the manner in which companies manage global trade and established itself as the thought leader in this space,” Michael Farlekas, CEO and president, E2open, said.
“We believe combining Amber Road’s advanced trade management and supply chain capabilities with E2open’s end-to-end networked supply chain solutions will further improve margins, lower risks and drive operational flexibility and efficiency for our customers.”
KeyBanc Capital Markets Inc. will be the financial advisor to Amber Road. Dentons US LLP will act as Amber Road’s legal counsel. Credit Suisse and Lazard will serve as financial advisors to E2open, and Willkie Farr & Gallagher LLP will serve as legal counsel.
