Descartes Acquires ShipTrack
Strengthens Ecommerce Final-Mile Capabilities on the Global Logistics Network
WATERLOO, Ontario, November 6, 2020 (GLOBE NEWSWIRE) -- Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader in uniting logistics-intensive businesses in commerce, announced that it has acquired ShipTrack, a leading provider of ecommerce final-mile solutions.
Headquartered in Canada, ShipTrack provides cloud-based mobile resource management and shipment tracking solutions. These solutions help customers automate dispatch, updates on shipment status and estimated time of arrival (ETA), and eliminate paper-based delivery processes. ShipTrack’s highly-configurable and scalable platform is particularly well-suited for the e-commerce home delivery, parcel and medical courier markets, helping these companies efficiently manage final-mile deliveries.
“The challenge for today’s final-mile carriers is how to handle increasing volumes alongside rising consumer expectations for delivery choice and real-time information,” said Shawn Winter, co-founder of ShipTrack and now VP Mobility Solutions at Descartes. “Our platform helps final-mile carriers meet that challenge head-on with powerful workflows across delivery processes and the ability to expose information to consumers in real-time. By joining forces with Descartes, we see an opportunity to create a truly differentiated product that combines our advanced final-mile solutions with Descartes route optimization and reservations capabilities.”
“We believe there is a permanent shift in buying preferences underway that will continue to see an increasing number of goods being bought online,” said Edward J. Ryan, Descartes’ CEO. “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 capitalize on these changing market dynamics.”
ShipTrack is headquartered just outside Ottawa, Canada. Descartes acquired ShipTrack for up-front cash consideration of $CAD 25.0 million (approximately $USD 19.0 million at November 6, 2020), plus potential performance-based consideration. The maximum amount payable under the all-cash performance-based earn-out is $CAD 25.0 million, based on ShipTrack achieving revenue-based targets over the first two years post-acquisition.