JPMorgan Chase is to acquire US B2B financial settlements outfit Xign for an undisclosed sum.
Under the agreement, the US moneycentre bank will acquire all of the capital stock of Xign, as well as the company’s technology, services and order-to-pay domain expertise. The Califronia-based unit will be combined with the commercial card and procurement businesses of JPMorgan Chase’s Treasury Services unit. The acquisition is expected to close in the second quarter of 2007, subject to regulatory approval.
JPMorgan Chase has partnered with Xign to offer its order-to-pay software set since October 2003, enabling customers to automate electronic purchase order delivery, invoicing and payments across Xign’s global settlement network of more than 40,000 suppliers.
Paul Simpson, senior vice president, Treasury Services business executive for trade, e-payables and card solutions, comments: "The order-to-pay space in which our two companies operate is dominated by paper processes that lock up large amounts of working capital to the detriment of both buying organisations and their supply chains."