NEW YORK, April 18, 2007 - JPMorgan Chase Bank, N.A. (NYSE: JPM) and Xign Corporation today announced that they have signed an Agreement and Plan of Merger whereby Xign, a leading provider of business-to-business on-demand financial settlement solutions, will be acquired and combined with the Commercial Card and Procurement businesses of JPMorgan Chase's Treasury Services unit. Under the Agreement and Plan of Merger, JPMorgan Chase will acquire all of the capital stock of Xign, as well as the company's technology, services and Order-to-Pay domain expertise. The acquisition is expected to close in the second quarter of 2007, subject to regulatory approval. Terms have not been disclosed.
JPMorgan Chase has partnered with Xign to offer its Order-to-Pay solution 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. The acquisition will further JPMorgan Chase's leadership in the Order-to-Pay space as Xign capabilities are more fully integrated into JPMorgan Chase's existing suite of payables solutions and future products are developed. With Xign, organizations transform their financial settlement operations from an inefficient, paper-bound activity to a streamlined, electronic process. In addition to dramatically reducing financial settlement processing costs and cycle time, Xign's capabilities expand early payment discount opportunities, strengthen supplier relationships, and deliver a rapid return on investment.
"JPMorgan Chase is committed to delivering best-in-class financial automation solutions to our clients," said Paul Simpson, senior vice president, Treasury Services business executive for Trade, E-Payables and Card Solutions. "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 organizations and their supply chains. After successfully partnering with Xign for more than three years, we look forward to delivering compelling new offerings with this market leader."
"We already had an extensive working relationship with JPMorgan Chase providing Order-to-Pay solutions, and now we are able to build on that relationship as part of the same firm," said Tom Glassanos, president and CEO, Xign Corporation. "Joining an organization that has a global infrastructure and already is the clear market leader for electronic payments and trade will bring tangible benefits to our clients."
Richard Erario, senior vice president and business head for Commercial Cards and Procurement, adds that "JPMorgan Chase's Order-To-Pay has evolved and now can be offered in a standardized version or in modules to deliver great value to organizations of almost any size, from middle market companies to large multinationals. In addition to this broad suite of capabilities, we have leveraged our domain expertise in purchasing cards so that we now offer a buyer-initiated card solution with straight through processing characteristics significantly more advanced than anything in the market today."
About Xign Corporation
Xign Corporation operates the leading global settlement network for business. Xign's suite of on-demand applications is the first to automate the complete commerce cycle - from electronic order delivery to electronic invoice and payment processing - to streamline operations and monetize working capital. With more than $100 billion in transactions processed and a fast growing network of 40,000-plus global suppliers, Xign offers the most complete and widely deployed service of its kind. Xign is headquartered in Pleasanton, CA. For more information, visit www.Xign.com.
About JPMorgan Chase Treasury Services
The Treasury Services business of JPMorgan Chase is a top-ranked, full-service provider of innovative payment, collection, liquidity and investment management, trade finance, commercial card and information solutions to corporations, financial services institutions, middle market companies, small businesses, governments and municipalities worldwide. With more than 50,000 clients and a presence in 36 countries, JPMorgan Chase Treasury Services is the world's largest provider of treasury management services. More information can be found at www.jpmorganchase.com/ts.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.4 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com.