Descartes Systems Group (NASDAQ: DSGX) (TSX: DSG), Waterloo, Ontario, has acquired Core Transport Technologies NZ Limited, Nelson, New Zealand,an electronic transportation network that provides global air carriers and ground handlers with shipment scanning and tracking solutions.
“As US domestic and international ecommerce continues to grow, more demands are being placed on carriers and their partners to deliver efficiently and report events in real-time,” said Ken Wood, EVP of Product Management at Descartes. “The CORE acquisition complements our recent investment in Velocity Mail, helping us to better serve the logistics service provider community working with postal authorities around the world. CORE’s solutions also extend beyond mail and parcel shipment tracking, with air cargo tracking solutions that we can add to our Global Logistics Network.”
Descartes acquired the company for up-front consideration of $21 million, plus potential performance-based consideration. The up-front consideration was satisfied with cash from Descartes’ existing acquisition line of credit. The maximum amount payable under the all-cash performance-based earn-out is $9 million, based on the company achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2021 and fiscal 2022.