WiseTech Global (ASX:WTC) Acquires Cargoguide and CargoSphere

Deal Financials

Cargoguide EV: $5.5m
CargoSphere EV: $9.2m
WiseTech Global EV/Rev: 15.1x

Transaction Overview

• On September 12, 2017 WiseTech Global Ltd acquired Cargoguide International B.V. and Planet Traders, Inc. d/b/a CargoSphere.
• Both companies provide freight shipping rate management software, but the Netherlands-based Cargoguide is focused on air freight, while the US-based CargoSphere is ocean freight focused.
• WiseTech is a global provider of CargoWise One, a cloud-based single-platform logistics software solution; this dual-acquisition marks the company’s ninth acquisition since 2015.

Increased M&A in the Supply Chain

• As discussed in our August 31st Spotlight on Körber’s acquisition of HighJump, globalization and SaaS are two driving forces behind the heightened M&A activity in the supply chain and logistics space.
• Acquiring both Cargoguide and CargoSphere allows WiseTech to expand in key regions while also broadening its multi-modal capabilities; logistics solution providers trying to build out international capabilities often do so through acquiring regional platform providers, and are willing to pay premium valuations for them.
• There have been a number of acquisitions in this space this year. Another notable transaction includes the establishment of Logistyx, which was formed by the three-way merger of Pantechnik, ADSI, and Agile Network, as reported in our May 31st Spotlight

Recent WiseTech Acquisitions

TBP was NOT an advisor to this transaction