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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.
