Sunday 15 July 2018

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Descartes Systems acquires MacroPoint

DUBAI, August 15, 2017

Canada-based Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has acquired US-based MacroPoint, an electronic transportation network providing location-based truck tracking and predictive freight capacity data content.

Descartes acquired MacroPoint on a tax-efficient basis for approximately $107 million satisfied with approximately $87 million in cash and $20 million in shares, said a statement.

The cash consideration was satisfied from $7 million of cash on hand and the balance from Descartes’ existing acquisition line of credit. The share consideration is subject to a 12 month hold period, with 50 per cent of the share consideration required to be held for at least 18 months, it said.

Ken Wood, executive vice president of product management at Descartes, said: “Consumers expect to see the location and progress of shipments from the point of order to delivery.”

“With leading e-commerce retailers and other shippers demanding that their transportation providers provide real-time location-based information, the business-to-business market now has the same expectation of full visibility into transportation moves,” he said.

“To meet this expectation, MacroPoint has established what we believe is the preeminent network of connected vehicles and location-based content in North America,” he added.

MacroPoint runs a connected network of over 2 million trucking assets and drivers. It connects to trucks through integrations to on-board electronic logging devices (ELDs), transportation management systems, GPS-enabled smart phone applications and location-based mobile phone triangulation.

MacroPoint uses this data to help transportation brokers, logistics service providers and shippers track the locations of deliveries in trucks. MacroPoint can also use this content to provide transportation brokers and shippers with predictive freight capacity to help identify early opportunities for additional freight moves.

Bennett Adelson, CEO of MacroPoint, said: “Our company is the market leader for truckload shipment visibility.”

“We believe that the combination of Descartes’ Global Logistics Network with our cloud-based, real-time load visibility platform creates a truly differentiated offering that helps customers research, plan, execute and monitor multi-modal shipments around the world,” he said.

Edward J Ryan, Descartes’ CEO, said: “Our company has a successful history of electronically connecting transportation providers to transportation brokers, logistics intermediaries and shippers to share data, automate processes, and run more efficiently.”

“With this experience, we appreciate the unique value of a network-based business focused on the transportation industry with a track record of high revenue growth, high recurring revenues and profitability. We’re excited to have MacroPoint join the Global Logistics Network so that we can jointly deliver even more value to the logistics and supply chain community,” he added. – TradeArabia News Service

Tags: | Descartes Systems |

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