4 October 2001
Strategic combination has 250,000 purchase order potential
ShipServ and Seavantage have joined forces to create a new company that will keep the ShipServ name. Combining the two companies will further strengthen ShipServ TradeNet’s position as the largest and fastest growing multi-buyer, multi-supplier trading platform in the ship supply management (SSM) sector.
ShipServ is strong in Scandinavia and the UK, while Seavantage has a substantial customer base in Benelux and Germany as well as the UK. Both companies are also starting to build business in Greece and Cyprus. Bringing them together creates a powerful new force in the European SSM market, with virtually no overlap in either buyer or supplier customers.
It also brings ShipServ a presence in Rotterdam, adding to their offices in London, Copenhagen, Oslo, Piraeus and Wilmington (US).
The new business will be a powerful attraction to suppliers with its contracted base of high quality shipowners, who make over 100,000 purchases a year with an estimated worth of $250m. The companies are in advanced discussions with new shipowner / manager customers which, if concluded, could further double the number of purchases made using TradeNet.
Seavantage’s customers will be transferred to ShipServ’s established TradeNet platform. The transition for these customers has been carefully planned and is expected to be a straightforward process.
The new company has the firm backing of both boards and the leading shareholders in both companies. Paul Østergaard, who continues as Chief Executive of ShipServ, said:
“Consolidation in the industry will boost confidence in e-commerce. The combined customer base builds liquidity as well as dramatically improving the speed and power of the TradeNet network. The new company now represents the only functioning trading platform in Europe for shipowners and their suppliers.”
Welcoming the agreement, Dina Matta, CEO of Seavantage who will be joining the board of ShipServ, commented:
“ShipServ and Seavantage have always shared a common vision for the industry and we have both differentiated ourselves from other competitors by focusing on providing value to all participants. This value will be further enhanced by our complementary strengths and products. Together we make a winning combination.”
Claire Milonas from Ionian Management in New York, one of ShipServ’s leading investors, added:
“This underlines our faith in the sector and the ability of ShipServ’s management to deliver what the shipping industry wants. The consolidation of both Seavantage’s and ShipServ’s deep shipping and management expertise should make it easier for companies in the maritime sector to adopt SSM solutions enabling them to provide ever more cost effective services in these challenging times.”
ShipServ will continue to provide a neutral trading forum for buyers and suppliers. Known for its even-handed approach to both sides of the ship supply business, ShipServ is also working with the software vendors who support the industry to integrate their products into ShipServ TradeNet. ShipServ expects that its expertise in integrating these vendors’ products through MTML will be of use to many Seavantage customers. MTML (Marine Trading Mark-up Language) is the shipping e-commerce standard, which ShipServ developed with the International Maritime Purchasing Association (IMPA).
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