JPMorgan Chase has signed an agreement to acquire Vastera, a Virgina-based provider of global trade process management software and services, for $129 million.
Under the deal JPMorgan Chase will pay $3 per Vastera share, a 50% premium on the company's closing price of $2 on Thursday. Vastera shares jumped 47.5% to $2.95 in pre-market trading this morning on news of the offer.
Vastera supplies solutions to automate the required trade management processes associated with the physical movement of goods across international borders. The software is designed to help companies to comply with country-specific trade regulations, to manage duties, taxes and fees and to collaborate with trading partners.
The unit will be merged with JPMorgan's logistics and trade services businesses which are housed in its treasury services division. JPMorgan says the acquisition will provide its clients with a "one-stop shop" that addresses the risks associated with moving goods across international borders.
Paul Simpson, emerging payments and global trade services business executive, treasury services, JPMorgan Chase, says: "Through this combination, JPMorgan Chase will be the first global financial institution to offer a complete integrated cash, trade and logistics solution across the physical and financial supply chains."
Completion of the merger is subject to approval by regulators and Vastera shareholders. JPMorgan says the transaction was approved by Vastera's board of directors and two major shareholders representing approximately 28% of the Vastera shares outstanding have committed to vote in favour of the deal.