WiseTech Global, the developer of CargoWise, a logistics execution software, recently acquired Envase Technologies (Envase), a transport management system software provider for drayage (container haulage), intermodal trucking, and landside logistics in North America. The transaction was valued at US $230 million. Envase was purchased from Firmament, a private investment firm and supply chain investor, and some other shareholders.
Envase's carrier solutions automate and provide visibility for container movement throughout all import and export haulage processes, from rail and port terminals to destination. With over 1,300 customers in North America, the company serves ports, depots, trucking companies, warehouses, and more. It is anticipated that the company will generate around US$35 million in revenue for the fiscal year 2023, with an EBITDA margin in the mid to low 20% range.
WiseTech will fund the transaction with a mix of cash (US$161 million) and new WiseTech Global shares issued to the vendors (US$69 million). The deal is expected to close in February 2023. Furthermore, existing cash reserves will cover the one-time transaction costs of around US$10 million.
"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," shared Richard White, Founder and CEO of WiseTech Global.
(Source – BusinessWire)
About WiseTech Global
Based in Alexandria, New South Wales, WiseTech empowers the world's supply chains through innovation and global technology. The company is improving connectivity, productivity, and resource usage for more than 18,000 logistics companies in over 165 countries. Its customers include 24 of the 25 largest global freight forwarders and 41 out of the top 50 third-party logistics providers globally. The company continuously invests in product development to create technology that prioritizes highly scalable, long-term solutions.