Monday, December 30, 2013

Global Logistics Network Extends Through Acquisitions of Freight Forwarding IT Suppliers

Extension of Multimodal and Supply Chain Management System Costs a Cool $26 Million
Shipping News Feature

CANADA – US – UK – SWITZERLAND – Descartes Systems Group, the North American based company which hosts a global community of freight professionals and provides supply chain management solutions worldwide, has made two key European acquisitions which considerably extend the company’s logistics network in the region. Descartes has purchased Impatex Freight Software which provides electronic customs filing and freight forwarding solutions to UK customers and will bring over 200 customers into the system.

The purchase of the Cadnam, Hampshire based company has cost a reported $8.3 million whilst the other key purchase, Swiss based B2B supply chain integration and e-invoicing solution group Compudata, brings around 500, mainly local, added contacts, at a cost approaching $18 million, both acquisitions to be funded from Descartes existing credit line. Descartes claims its logistics community is the largest multimodal network of logistics intensive companies in the world, with over 171,000 connected parties using its cloud-based services in over 160 countries. Edward J. Ryan, Descartes’ CEO, commented on the purchases, saying:

“Impatex has been developing its feature-rich, UK customs compliance platform in a transaction-based revenue business model for more than 20 years. Impatex strengthens Descartes’ Customs and Regulatory Compliance platform with additional functionality and a broader set of services for the UK market. In addition, Impatex’s NetFreight forwarding application provides an agile operations platform for smaller forwarders to address local needs while extending their business reach and efficiency through integration with Descartes’ Global Logistics Network.

“Descartes is establishing itself as the global network for communities collaborating on logistics and supply chain processes. The addition of Compudata’s solutions and community to our Logistics Technology Platform is another important step on this journey, and it further strengthens our global market leadership position. Our customers now have access to a broader scale and scope of document-critical functionalities that are key to moving goods. This can help them link critical elements and information in the supply chain, increase data accuracy and make the flow of goods more efficient.”