Aerospace internet exchange Exostar has secured its much-needed fifth industry partner with Rolls-Royce joining BAE Systems, Boeing, Lockheed Martin and Raytheon and technology partner Commerce One as owners of the global aerospace/ defence marketplace.
The original owners of the exchange have long sought a new industry partner. They had hoped to announce EADS as an equity participant at last year's Farnborough air show until the European giant pulled out of talks to concentrate on its formation (Flight International, 6-12 March). Exostar declines to comment on what R-R is paying for its 17% stake. Sources suggest it is in around $20 million.
R-R provides Exostar with more European input, addressing concerns about the US dominance of aerospace e-business. R-R "strengthens our reach in Europe", says Exostar chief marketing officer Craig Jeffries.
Although Exostar has achieved critical mass in terms of owners, it has not closed the door to new equity partners, says Jeffries. " We don't rule out another partner, but they would have to add value," he says. Talks are continuing with EADS and Airbus, but Jeffries says that these manufacturers have yet to determine their e-business strategies.
Meanwhile, progress is being made on developing the exchange, which went live last September. Indirect and direct procurement is up and running. Around 20,000 transactions by 4,000 suppliers are being conducted weekly, says Jeffries. Exostar is now searching for a new chief executive following the surprise departure of Andy Pyler in early June.
Source: Flight International
