Quadrem Africa, the South African subsidiary of Quadrem's global eMarketplace, has joined forces with local electronic sourcing company TradeWorld to create a black-owned company that claims it will be the largest online marketplace in Africa.
TradeWorld, which is a subsidiary of black economic-empowerment (BEE) company Tactical Software Systems (TSS), will join Quadrem Africa, bringing with it a 100-year history in SA's tendering and supplier-sourcing sector. The companies will trade as Quadrem Africa.
As a merged company, Quadrem Africa and TradeWorld will process an average of 600 000 requests for quotations and tender notifications, and 350 000 purchase orders valued at R6.4 billion a year, assuming an exchange rate of R7.50 a dollar.
Commenting on the transaction, Brandon Spear, senior VP for Quadrem Operations worldwide, says: "With Quadrem Africa now both a BEE company, as well as the largest eMarketplace in Africa, we look forward to how this merger will drive forward the growth prospects on the continent."
Francois Naud'e, CEO of TradeWorld, will become commercial director of the merged entity, which will remain part of the Quadrem Global structure but will be 51% black-owned through TSS. TSS is 100% black-owned and led by Danny Mackay.
Synergy
"This is the most logical and commercially sensible next step towards creating a holistic solution for both TradeWorld's and Quadrem's trading communities, while strengthening the commercial synergy between the two companies," notes Naud'e.
The new company, which will have a local board, will have Danny Mackay as its chairman; Mike Kersten, currently regional VP of Quadrem Africa, will be MD; Francois Naud'e, currently CEO of TradeWorld, as commercial director; and Jehan Mackay and Brian Williams as directors.
"Not only will it open up a new and extensive supplier base to Quadrem's larger international buying community, it will also enhance the buyers' ability to increase the BEE and SME procurement spend in a low-risk environment," says Kersten.
TradeWorld has developed a supplier database comprising over 12 000 registered and verified suppliers whose profiles are currently accessible to over 98 procurement units nationally; and potentially to more than 600 of Quadrem's global buyer locations.
Locally, Quadrem Africa has 70 buyer locations across the country, which trade daily with over 2 300 registered suppliers. The result is over 1.3 million transactions and more than $1.2 billion in trade each year.
Cooperative efforts between Quadrem Africa and TradeWorld have yielded 35% compounded annual growth for each respective business, over the past four years.
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