WISETECH Global is to acquire Envase Technologies, a transport management software provider, for US$230 million (around $326.5 million).
Headquartered in the United States, Envase provides transport management system software for intermodal trucking, drayage and landside logistics.
WiseTech Global is acquiring Envase from private investment firm and supply chain investor Firmament, and a small number of other sellers.
WiseTech intends to fund the transaction through a combination of 70% cash (US$161 million, or $229 million) and 30% new WiseTech Global shares issued to the vendors (equivalent to US$69 million, or $98 million).
Also, expected one-off transaction costs of approximately US$10 million (around $14 million) will be funded from existing cash reserves.
The companies expect to complete the transaction next month.
“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,” WiseTech Global CEO Richard White said.
Envase CEO Larry Cuddy Jr said the deal is an exciting development for the Envase and WiseTech teams and customer bases.
“Joining the WiseTech Global group gives Envase the scale and additional resources needed to make a bigger impact,” he said.
“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.”
Envase said it has more than 1300 customers across North America including trucking companies, ports, depots and warehouses.
The company is expected to generate approximately US$35 million (around $50 million) of revenue for the calendar year 2023 with an EBITDA margin in the low to mid 20% range.
Mr Cuddy said the Envase team is grateful for Firmament’s support over the years.
