Descartes buys last-mile software firm

Descartes Systems Group has acquired GroundCloud, a cloud-based provider of final-mile carrier solutions and road safety compliance tools.

Descartes paid approximately US$138 million, plus a potential performance-based payment. The maximum amount payable under the all-cash performance-based earn-out is $USD 80 million, based on the combined business achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2025 and fiscal 2026.

GroundCloud provides final-mile logistics automation, combining operations, safety and compliance in an integrated platform. Final-mile carriers use it to receive customer delivery orders, plan and execute routes against those orders, train and monitor drivers on safety and performance, manage assets and resources, and analyze the operating efficiency of their business. GroundCloud’s platform also incorporates video telematics to provide driving event detection and verification, combined with reactive coaching solutions designed to improve safety.

“To deliver safely and efficiently on customer expectations in today’s dynamic market conditions, final-mile carriers need a holistic approach to operations, safety and compliance,” said Andrew Roszko, chief commercial officer at Descartes.

“This challenge is even more complex for the thousands of subcontracted delivery service providers working as agents for larger carriers. GroundCloud helps ensure seamless operations, end-to-end visibility, and standards of safety and compliance are met, including helping final-mile carriers comply with the various safety mandates of large transportation brands.”

 Descartes CEO Edward Ryan said the buy is part of an ongoing strategy to increase its last-mile capabilities. He said the company expects to use GroundCloud’s safety content and compliance solutions across a wider set of industry verticals in its routing and mobile customer base.

GroundCloud is headquartered in Minneapolis, Minnesota.