LONDON (04/25/2000) - Management and technology consultant firm, Andersen Consulting Inc. has formed a partnership with Sun Microsystems Inc. to establish an Internet-based procurement firm, the companies announced today.
The yet-to-be-named e-procurement venture will work with Sun and iPlanet E-Commerce Solutions, a Sun-Netscape Alliance, the companies announced in a statement. Specifically, Andersen Consulting will initially oversee the day to day running of the new company, iPlanet the software packages, and Sun the servers and storage.
The e-procurement firm, which is expected to be up and running by the end of the third quarter, has already agreed to buy US$300 million worth of Sun hardware and services along with iPlanet e-commerce infrastructure and applications software, Andersen and Sun said.
Andersen Consulting, through its venture capital unit AC Ventures, has made a majority equity investment in the e-procurement venture and Sun has committed to a minority equity investment, Andersen and Sun said. Several other strategic partners/customers will be pursued for the venture, the companies said.
The new company will serve such industries as the financial services industry, automotive, telecommunications, chemicals and food-products industry, and is looking to facilitate over $200 billion worth of indirect procurement by 2004, Andersen and Sun said. The e-procurement venture already has commitments from companies worldwide willing to spend more than $20 billion over the e-commerce marketplace, the companies said.
Andersen and Sun did not disclose financial details regarding initial investments in the e-procurement firm.
Andersen Consulting, in Chicago, can be contacted at +1-312-693-7768 or at http://www.ac.com/. Sun, in Palo Alto, California, can be reached at +1-650-960-1300 or at http://www.sun.com/. The Sun-Netscape Alliance, in Mountain View, Calif., can be contacted at +1-650-937-2555, or at http://www.iplanet.com.