Supply chain software firm Descartes acquires GroundCloud for $138M

Logistics and provide chain software-as-a-service firm Descartes Systems Group Inc. stated right this moment it has acquired GroundCloud, creator of a cloud-hosted final-mile automation platform, for $138 million.

Based in 1981, Descartes is among the oldest enterprise software program corporations on the block. It sells a set of software program merchandise aimed toward managing logistics and supply chains. With its software program, firms can monitor and handle logistics processes similar to supply sources, invoices, documentation and shipments extra effectively.

The corporate targets transportation suppliers, logistics firms and distribution-intensive enterprises, and counts shoppers together with Air Canada, The Emirates Group, The Residence Depot Inc. and United Parcel Service of America Inc.

By buying GroundCloud, which was formally referred to as Windigo Logistics Inc., Descartes is aiming to enhance its final-mile supply capabilities, placing employee and group security on the forefront of its efforts.

GroundCloud’s cloud-hosted software program platform is claimed to mix operations, security and compliance, and is utilized by final-mile carriers to obtain buyer supply orders and plan and execute routes based mostly on these orders. It additionally helps with coaching and monitoring supply drivers in security and efficiency, managing property and sources, and analyzing the effectivity of logistics operations. As well as, as a part of its mandate to enhance security, GroundCloud’s platform additionally incorporates video telematics for driving occasion detection and verification, enabling firms to leverage the insights it generates to tell reactive coaching packages.

Descartes Chief Industrial Officer Andrew Roszko stated the corporate acquired GroundCloud as a result of final-mile carriers have to take a extra holistic strategy to operations, security and compliance. “This problem is much more advanced for the 1000’s of subcontracted supply service suppliers working as brokers for bigger carriers,” he stated. “GroundCloud helps guarantee seamless operations, end-to-end visibility, and requirements of security and compliance are met, together with serving to final-mile carriers adjust to the varied security mandates of enormous transportation manufacturers.”

“When mixed with Descartes, we see an incredible alternative to leverage GroundCloud’s security content material and compliance options throughout a wider set of trade verticals in our routing and cell buyer base,” added Descartes Chief Govt Edward Ryan.

Descartes stated it used money readily available to finance the $180 million acquisition. Nonetheless, the ultimate value might improve by a most of $80 million below a performance-based consideration that’s based mostly on reaching sure income targets in every of the primary two years post-acquisition.

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