Under the agreement, Vastera shareholders will receive US$3.00 for each outstanding share of Vastera common stock they own, for a total transaction value of approximately US$129mn. Vastera’s solutions automate the required trade management processes associated with the physical movement of goods internationally. The acquisition will further provide JP Morgan Chase clients with a “one-stop shop “that addresses the increasing challenges and risks associated with moving goods across international borders. The JP Morgan Chase solution facilitates the seamless management of information and processes in support of physical goods movement and financial settlement of the complete global trade process.
“We already had an extensive working relationship with JP Morgan Chase providing global trade management solutions, and now we are able to build on that relationship as a part of the same firm,” adds Tim Davenport, chief executive officer at Vastera. “Joining an organisation that has a broad global trade management infrastructure will bring tangible benefits to our clients.” “We are committed to expanding our extensive treasury management expertise to deliver comprehensive solutions best suited to our clients “current and evolving business requirements,” says Lori Hricik, executive vice-president and head of JP Morgan Chase’s treasury services unit. “This acquisition brings our clients the benefits of end-to-end global trade management solutions and it brings Vastera’s clients the benefits of JP Morgan Chase’s comprehensive financial services platform and product set.” Completion of the merger is subject to Vastera shareholder and various banking and other customary regulatory approvals. The transaction was approved by Vastera’s board of directors. Vastera’s board recommends that the Vastera shareholders vote in favour of the transaction at a shareholder meeting that will be scheduled as soon as practicable. Two major shareholders representing approximately 28% of the Vastera shares outstanding have committed to vote their shares in favour of the transaction pursuant to voting agreements entered into with JP Morgan Chase.