ASX-listed shipping platform WiseTech Global has acquired yet another technology company, acquiring US logistics management software startup Envase for US$230 million (A$327 million).
Founded in 2020, Envase Technologies provides transportation management system software for intermodal freight and landside logistics in North America. The acquisition agreement is with private investment firm Firmament and several other investors.
Envase has more than 1,300 customers in North America, including transportation companies, ports, depots and warehouses, and is expected to generate approximately US$35 million in revenue for calendar year 2023 with an EBITDA margin of low to mid-20%.
Sydney-based WiseTech (ASX:WTC) will finance the transaction through a combination of 70% cash (US$161 million) and 30% new WiseTech Global shares issued to the suppliers (equivalent to US$69 million). The deal is expected to close next month. Transaction costs of approximately US$10 million will be funded from existing cash reserves.
WiseTech founder and CEO Richard White said the cash component will be funded from existing cash reserves and the company’s I-shares issued to the sellers will be subject to 12-month escrow agreements from the date of completion .
“This is a strategically important acquisition in landside logistics, expanding and strengthening our position in one of our six key CargoWise development priorities, and we are very excited to have the Envase team join the WiseTech Global group,” he said.
Larry Cuddy, Jr., CEO of Envase, said the merger is exciting for both companies and their customers.
“Joining the WiseTech Global group gives Envase the scale and additional resources it needs to make a bigger impact,” he said.
“In recent years we have put together and integrated a powerful package of landside logistics solutions. Combined with the strength and scale of WiseTech and its CargoWise platform and depth in international logistics, we have a powerful platform that we expect will further increase capacity and utilization and drive innovation in what is an intensely complex and highly fragmented ecosystem. it.”
WiseTech’s latest acquisition, one of about 30 in its 25-year history, and the most expensive to date, comes just two weeks after the Sydney-based billionaire founder acquired recently delisted data services company Kyckr in a deal worth approximately $43.5 million, made through White’s personal investment vehicle RealWise KYK AV.
WiseTech’s share price, which is up about 10% this month, is stable on the news, trading at about $56.03 on the news.