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Transportation software firm Descartes Systems Group has purchased ShipTrack, a provider of shipment tracking technology for final-mile carriers, for about $19 million.
Under the terms of the deal, Descartes also could pay up to an additional $19 million if ShipTrack hits revenue targets during the first two years after the acquisition.
ShipTrack, headquartered near Ottawa, Canada, offers cloud-based mobile resource management and tracking software designed to automate dispatching, eliminate paperwork and provide updates on shipment status and estimated time of arrival.
ShipTrack and @DescartesSG Inc. are joining forces to strengthen e-commerce final-mile capabilities on the Global Logistics Network.— ShipTrack (@shiptrack) November 6, 2020
Click the link to view our press release. https://t.co/S22uIjqBql#TrackAnythingAnywhere #ShipTrack #Descartes #logistics
Descartes, based in Waterloo, Ontario, said ShipTrack is well suited to e-commerce home delivery, parcel and medical courier operations.
“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 vice president of mobility solutions at Descartes. “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.”
The continued growth of e-commerce in recent years has been placing additional pressure on carriers to manage final-mile deliveries more efficiently.
“We believe there is a permanent shift in buying preferences underway that will continue to see an increasing number of goods being bought online,” Descartes CEO Edward Ryan said in the Nov. 6 announcement. “Descartes continues to invest in our e-commerce capabilities to make sure that our customers, large and small, can fulfill orders and meet delivery commitments efficiently.”
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