U.S.-China trade at G-20; Apple to build in China; Amazon, the shipper; Learn about M&A interest in procurement software firms

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The G-20 economic summit has begun in Osaka, Japan. Already, President Donald Trump has met with Russian President Vladimir Putin. Most anticipation surrounds the meeting between Trump and Chinese President Xi Jinping on Saturday. CNBC reports that many Wall Street banks expect a delay in further tariffs and more trade talks. Another CNBC story quotes a White House official saying that Trump doesn’t need to hear much to settle for a truce for now.

Apple moves Mac Pro production to China

Apple is moving production of its  desktop computer Mac Pro from the U.S. to China, The Wall Street Journal reports. The U.S.-China trade war and its tariffs on products has encouraged companies to move supply chains away from China, but not in this case.

 “The tech giant has tapped contractor Quanta Computer Inc. to manufacture the $6,000 desktop computer and is ramping up production at a factory near Shanghai,” according to the Journal article, which cited sources. “Quanta’s facility is close to other Apple suppliers across Asia, making it possible for Apple to achieve lower shipping costs than if it shipped components to the U.S.”

Amazon, the shipper

It's not even been 10 years since Amazon entered the logistics business but its already a major shipper to be reckoned with. Data provided to Axios by Rakuten Intelligence showed nearly half (48%) of Amazon packages were delivered by the company itself. That's a dramatic shift from two years ago, when the Postal Service delivered more than 60% of Amazon parcels, and Amazon just around 15%.

M&A interest in procurement software companies targets 10 types

A recent Spend Matters series for PRO subscribers delves into the mergers & acquisition activity that’s going on in the procurement software sector.

But what types of companies are attracting the most interest in the sector? We can somewhat cleanly segment them into the following 10 categories:

  • Procurement technology suites
  • Transaction-focused solutions
  • Providers with a significant interest in adjacencies to transaction-based solutions, such as payment and financing
  • Nimble solutions
  • Leveraged buying / GPO models
  • Data / analytics / market intelligence
  • Services procurement
  • Contract management and analytics
  • Supplier management
  • Working capital and treasury solutions

Part 1 details the first five types, and Part 2 examines the next five. (Non-PRO subscribers can click the links to see a substantial amount of information that’s not behind the paywall.)

The series also will explore the typical investment theses as the mechanics of deal processes and what is unique to the solution area. Buyers that are new to the sector often have a higher learning curve than expected. It also looks at important dynamics in the market that have changed in recent months as buyer interest from the strategic and financial sides increases.

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