WATERLOO, Ontario – Descartes Systems Group has acquired ShipTrack, a provider of e-commerce final-mile solutions.
Headquartered in Plantagenet, Ontario, ShipTrack provides cloud-based mobile resource management and shipment tracking solutions.
These apps automate dispatch, update shipment status and estimated time of arrival (ETA), and eliminate paper-based delivery processes.
Descartes acquired ShipTrack for up-front cash consideration of $25 million, plus potential performance-based consideration. The maximum amount payable under the all-cash performance-based earn-out is $25 million, based on ShipTrack achieving revenue-based targets over the first two years post-acquisition.
Descartes’s CEO, Edward Ryan, said the company made the acquisition because it believes the increasing shift to e-commerce is permanent. The ShipTrack apps complement Descartes’s own offerings of routing and telematics solutions, he noted.
“The challenge for today’s final-mile carriers is how to handle increasing volumes alongside rising consumer expectations for delivery choice and real-time information,” said Shawn Winter, co-founder of ShipTrack and now VP Mobility Solutions at Descartes.
“Our platform helps final-mile carriers meet that challenge head-on with powerful workflows across delivery processes and the ability to expose information to consumers in real-time. By joining forces with Descartes, we see an opportunity to create a truly differentiated product that combines our advanced final-mile solutions with Descartes route optimization and reservations capabilities.”
Descartes is based in Waterloo, Ontario, and provides on-demand, software-as-a-service solutions for routing, scheduling, tracking, customs, planning and auditing freight shipments.