Canadian tech firm Descartes Systems Group has acquired Cracking Logistics Limited dba, known as 鈥楰ontainers鈥�, a leading provider of client-facing digital freight execution platforms.
Headquartered in the UK, Kontainers provides a fully digital freight platform including quoting, booking, tracking and dashboard analytics.
The platform enables logistics services providers to create branded digital experiences for their end customers.
Nasdaq listed Descartes acquired Kontainers for total consideration of up to CA$12m, with up-front consideration of US$6m in cash, plus potential performance-based consideration.
The maximum amount payable under the all-cash performance-based earn-out is $US 6million, based on Kontainers achieving revenue-based targets in each of the first two years post-acquisition.
鈥淲e鈥檝e worked very hard with some of the world鈥檚 top logistics companies to create an optimal digital customer experience,鈥� said Graham Parker, co-founder of Kontainers and now VP Sales Digital Freight Solutions at Descartes.
鈥淥ur team of domain experts is thrilled to combine with Descartes, which will give us the opportunity to reach a broader audience much more quickly. When added to the Global Logistics Network, we鈥檒l also have the ability to offer a pre-integrated solution that combines Kontainers digital freight execution with Descartes鈥� rate management and forwarder enterprise systems.鈥�
Edward J. Ryan, Descartes鈥� CEO added: 鈥淭he last few months have shown how quickly the world can change, and the shift to digitization is accelerating as a result,鈥� said
鈥淟ogistics services providers operate on tight margins. Those that don鈥檛 move quickly to digitize their customer experience will be faced with higher costs to serve. Without the proper real-time connections between client-facing platforms and the quoting, rating and booking systems that this digitization brings, LSPs will struggle to efficiently meet customer demand in today鈥檚 dynamic market.
鈥淲e鈥檙e looking forward to working with the Kontainers customers, partners and team of domain experts to help the logistics community capitalize on this opportunity.鈥�