It’s not all gloom and doom out there – deals are still happening and this announced deal is huge. IBM gets, presumably, a huge chunk of change selling its global logistics operations and Geodis in turn acquires a EUR 1 billion/year client under a multi-year agreement. IBM sees a nice influx of cash to its short term bottom line and hopefully long term cost savings from its new deal with Geodis. Geodis locks in a gigantic client and contract over a lengthy time period and expands its global network and services offerings significantly.
The move is part of Geodis’ global expansion strategy, in which it aims to move from a European multi services company to a worldwide logistics provider. Since 2007 it has strengthened its position in the Americas and is expanding in China, India and Russia.
Jean-Louis Demeulenaere, deputy CEO of Geodis, said: “With this partnership, we will strengthen the skills and expertise required to service, both IBM’s and our existing and future clients, core logistics needs in more than 120 countries. IBM’s global logistics operations will significantly upgrade our services portfolio.”
Hat tip to China Logistics News.