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November 9, 2020 12:15 PM, EST

Descartes Bolsters Final-Mile Capabilities With ShipTrack Acquisition

Descartes/ShipTrackshiptrackapp.com

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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.

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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