ASX-listed shipping platform WiseTech Global has acquired yet another tech company, snapping up the US logistics management software startup Envase for US$230 million (A$327m).
Founded in 2020, Envase Technologies supplies transport management system software for intermodal trucking and landside logistics in North America. The acquisition deal is with private investment firm Firmament, and several other investors.
Envase has more than 1,300 customers across North America include trucking companies, ports, depots, and warehouses and 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.
Sydney-headquartered WiseTech (ASX:WTC) 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$69m). The deal is expected to be finalised next month. Transaction costs of around US$10m 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 l shares issued to the vendors will be subject to 12-month escrow agreements from the date of completion.
“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,” he said.
Envase’s CEO Larry Cuddy, Jr, said the merger is an exciting for both companies and their customers.
“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 utilisation and drive innovation in what is an intensely complex and highly fragmented ecosystem.”
The latest WiseTech acquisition, one of around 30 over its 25-year history, and its most expensive to date, comes just a fortnight after the company Sydney-based billionaire founder acquired recently delisted data services company Kyckr in a deal is worth around $43.5 million, made through White’s personal investment vehicle RealWise KYK AV.
WiseTech’s share price, which has climbed around 10% this month, is steady on the news, trading at around $56.03 on the news.