and will assume control of all activities related to both HDeXchange, and its wholly owned subsidiary, HDX Services.
HDX will continue to operate as the industry's voice for electronic commerce initiatives, as well as maintain its full suite of services, but with the financial backing of Datalliance. Datalliance will retain Edward Kuo as executive director on a long-term basis, and the services of the current HDX Board of Directors on a short-term basis.
In a letter to members, Jay Johnston, chairman of the HDX Board, explained that during its nearly 10 years HDX has significantly increased the use of electronic purchase orders and invoices, established vendor-managed inventory practices and introduced automated price update processes. However, "with the ever changing IT marketplace and the always growing needs of the HD distribution industry, the board and manageemnt team realized that HDX could not effecively meet those needs on its own. We recognized that the stand-alone, not-for-profit structure of HDX lacked the resources required both financially and physically to grow with the industry and the world of IT."
"Datalliance has been one of HDX's best supporters over the years as both a customer and a vendor partner, so this is an ideal fit," said Johnston. "HDX will benefit from the years of experience Datalliance has in running a technology-based company, as well as the additional strategic and financial resources it brings to the table," he added.
"HDX has effected a significant amount of change in this industry over the last 10 years," said Kuo. "With Datalliance, we increase our financial backing, giving us an opportunity to expand the reach of our services and support of those services."
The acquisition will be effective Sept. 1. HDX headquarters will remain in Ada, Mich., with some administrative services being transferred to Datalliance headquarters in Cincinnati, Ohio.