e-Auction Global Trading Inc. (NASDAQ OTC BB: EAUC), the parent company of Aucxis Corp., a provider of real-time trading and financial technologies for e-Marketplaces, announced today that it has formed a strategic partnership with Electronic Data Systems Limited (EDS) to jointly target US$100 million in business over 5 years through the distribution and provisioning of the Aucxis eFinance Hub.
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Aucxis and EDS will undertake a joint business development, sales, and marketing program to generate widespread adoption of the Aucxis eFinance Hub, the core component of its recently announced Real-Time Commerce Platform. Working together, Aucxis and EDS will leverage EDS’ existing channels to market and launch into new verticals, delivering a technology platform that will increase liquidity in electronic marketplaces by eliminating payment risk between business-to-business trading partners.
As part of the agreement, EDS will provide state-of-the-art hosting and network management infrastructure required to support the rollout and critical demands of Aucxis’ eFinance Hub. EDS will also provide Aucxis with systems integration services to assist in the rapid installation and rollout of the Hub to new and existing customers.
“This alliance with EDS is a strong endorsement of our technology, and offers our company a tremendous opportunity to provide valuable financial services to all electronic marketplaces world-wide,” said Dan McKenzie, President and CEO, Aucxis Corp. “EDS is highly regarded in the industry for its systems integration skills, reliable technical solutions and global presence. EDS will play a critical role in the adoption and distribution of our eFinance Hub enabling Aucxis to accelerate the roll-out of our product offerings and significantly de-risk our implementation plans.”
The Aucxis eFinance Hub will deliver the necessary tools to distribute, allocate, and manage a buyer’s financial collateral, enabling secured, guaranteed, real-time trading. The Collateral Management Module, a key component of the eFinance Hub, is a real-time credit reservation system that links ‘digital procurement tokens,’ in effect a digital payment guarantee, to marketplace transactions. This process secures a reservation against a financial instrument such as cash, lines of credit, bank guarantees, letters of credit and other forms of generally accepted credit including goodwill.
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By GlobalData“We are addressing a fundamental problem within online trading relationships,” added McKenzie. “The Aucxis eFinance Hub will eliminate the risk of doing business without pre-established relationships and help realize the potential of B2B e-commerce”
“We were attracted to the leadership Aucxis brings to e-Marketplaces through its financial services and open trading platform,” said Steven Leonard, President of EDS, E.Solutions Europe, the Middle East and Africa. “Our partnership with Aucxis will address a major concern in B2B ecommerce – the ability to eliminate payment risk when trading with anonymous parties online.”
“Opportunities in the business-to-business e-commerce market continue to grow and inspire the creation of e-Marketplaces,” said Rob Rosenthal, Research Analyst with IDC’s Internet & eCommerce Strategies Group. “As worldwide B2B e-commerce grows from US$212 billion in 2000 to US$2.2 trillion in 2004, success for e-business will hinge on attaining critical mass and accelerating adoption rates. Builders of e-Marketplaces will only achieve these goals through partnerships with companies that specialize in strategic consulting, business systems integration, software development, and Web operations.”
About Aucxis
Aucxis is a provider of real-time trading and financial technologies for electronic marketplaces. The Company has an established customer base of over 150 markets within the perishable commodities industry, facilitating more than 125,000 transactions per hour. Together with a strong network of financial and technology partners, Aucxis has developed a financial trading platform for the allocation and management of financial collateral for real-time trading. Aucxis intends to utilize this platform to introduce additional financial services products such as foreign exchange, credit insurance, credit financing and settlement services. Aucxis is headquartered in Toronto, Canada and has operations in North America, Europe and Australia. The Company’s parent, e-Auction Global Trading Inc., is traded on the NASDAQ OTC:BB under the trading symbol, EAUC. For more information visit www.aucxis.com
About EDS
EDS, the leading global services company, provides strategy, implementation and hosting for clients managing the business and technology complexities of the digital economy. EDS brings together the world’s best technologies to address critical client business imperatives. It helps clients eliminate boundaries, collaborate in new ways, establish their customers’ trust and continuously seek improvement. EDS, with its management consulting subsidiary, A.T. Kearney, serves the world’s leading companies and governments in 55 countries. EDS reported revenues of $19.2 billion in 2000. The company’s stock is traded on the New York Stock Exchange (NYSE: EDS) and the London Stock Exchange. Learn more at www.eds.com
Forward-Looking Statements
Cautionary Statement for purposes of the “Safe Harbor” Provisions of the Private securities Litigation Reform Act of 1995: All statements, other than historical facts, included in the foregoing press release regarding e-Auction Global Trading Inc.’s financial position, business strategy, and plans of management for future operations are “forward-looking statements.” These statements are based on management’s beliefs and assumptions, and on information currently available to management. Forward-looking statements include, but are not limited to, statements in which words such as “expect,” “see,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “consider,” or similar expressions are used. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions, including risks discussed under “Risk Factors” in e-Auction Global Trading Inc.’s reports filed from time to time with the U.S. Securities and Exchange Commission. e-Auction Global Trading Inc.’s actual results and stockholder values may differ materially from those anticipated or expressed in these forward looking statements. Many of the factors that will determine these results and values are beyond e-Auction Global Trading Inc.’s ability to control or predict. Readers of this press release are cautioned not to put undue reliance on any forward-looking statement and e-Auction Global Trading Inc.’s undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.
