Leading logistics execution software developer WiseTech Global (ASX:WTC) is acquiring Envase Technologies, a provider of transport management system software for intermodal trucking and landside logistics in North America in a transaction valued at US$230 million. Envase is being acquired from private investment firm and supply chain investor Firmament, and a small number of other sellers.
This is a strategically significant acquisition in landside logistics, which extends and strengthens our position in one of our six key CargoWise development priority areas, and we’re extremely pleased to have the Envase team join the WiseTech Global group,” Founder and CEO, Richard White, said.
Headquartered in the United States, Envase’s solutions for carriers automate and provide visibility for the movement of containers across all aspects of import and export haulage operations from port and rail terminals to destination. Envase’s more than 1,300 customers across North America include trucking companies, ports, depots, and warehouses. Envase is expected to generate approximately US$35 million of revenue for the calendar year 2023 with an EBITDA margin in the low to mid 20% range.
WiseTech will fund the transaction via a combination of 70% cash (US$161 million) and
30% new WiseTech Global shares issued to the vendors (equivalent to US$69 million). The cash component of the transaction will be funded from existing cash reserves and the WiseTech Global shares issued to the vendors will be subject to 12-month escrow agreements from the date of completion. The acquisition is expected to complete in February 2023. In addition, one- off transaction costs of approximately US$10 million will be funded from existing cash reserves.
Envase’s CEO Larry Cuddy, Jr, said this deal is an exciting development for both the Envase and WiseTech customer bases, and the Envase team.
“ Joining the WiseTech Global group gives Envase the scale and additional resources needed to make a bigger impact. Over the past few years, we have assembled and integrated a powerful suite of landside logistics solutions.
“Combined with the strength and size of WiseTech and its CargoWise platform and depth in international logistics, we have a powerful platform that we expect to further increase capacity and utilization and drive innovation in what is an intensely complex and highly fragmented ecosystem.
“The Envase team is grateful for the support of Firmament over the years and for their vision to establish Envase as a leader in landside logistics.”