Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Logistics technology company Descartes Systems Group (DSG) has acquired e-commerce final-mile solutions provider ShipTrack
  • The newly acquired ShipTrack offers cloud-based mobile resource management and shipment tracking solutions
  • Descartes purchased ShipTrack for an up-front cash consideration of C$25 million, plus potential performance-based consideration
  • Over the next two years, ShipTrack hopes to earn another $25 million in all-cash performance-based payments
  • Descartes Systems Group (DSG) is down 0.50 per cent and is currently trading for $75.83 per share

Logistics technology company Descartes Systems Group (DSG) has acquired e-commerce final-mile solutions provider ShipTrack.

Based just outside of Ottawa, ShipTrack offers cloud-based mobile resource management and shipment tracking solutions. The technology allows customers to automate dispatch, update shipment statuses and estimated times of arrival, and eliminate paper-based delivery processes.

ShipTrack’s platform particularly helps companies in the e-commerce home delivery, parcel, and medical courier markets to efficiently manage their final-mile deliveries.

Descartes Systems acquired ShipTrack for an up-front cash consideration of C$25 million, as well as potential performance-based consideration. 

ShipTrack could possibly earn up to an additional $25 million in all-cash performance-based payments from Descartes. This will be determined by how the newly acquired business meets revenue-based targets over the next two years.

Descartes’ CEO, Edward J Ryan, believes there is a permanent shift in buying preferences which will increase the number of goods bought online. This has been especially true in 2020, as the COVID-19 pandemic has pushed more consumers to favour online markets over brick-and-mortar locations.

“Descartes continues to invest in our e-commerce capabilities to make sure that our customers, large and small, can fulfil orders and meet delivery commitments efficiently.

“ShipTrack complements this strategy, and, when combined with our advanced Routing, Mobile, and Telematics suite of solutions, fills a gap in the market.

“We’re looking forward to working with the ShipTrack customers, partners, and team of domain experts to help the final-mile carrier community capitalise on these changing market dynamics,” Edward added.

Descartes Systems Group (DSG) is down 0.50 per cent and is trading for $75.83 per share, as of 9:49am EST.

More From The Market Herald

@ the Bell: Little movement among markets

The TSX stock index kept on the positive side Tuesday as global risk-off sentiments weighed ahead of more economic data later this week.

Scratching the surface of an emerging gold belt in Canada

Westhaven Gold Corp. (TSXV:WHN) is a Canadian exploration company that has four gold projects along the Spences Bridge Gold Belt in B.C.

This stock is ready to capture the lead in the diabetes market

Diabetes specialist Glucotrack (NASDAQ:GCTK) has changed its business strategy to transition to continuous glucose monitoring.

@ the Bell: Markets soften on Cyber Monday

Mounting losses endured by the industrial, energy, and mining sectors pressured Canada’s main stock index to a lower close on Cyber Monday.