WiseTech Global (ASX:WTC) Acquires Cargoguide and CargoSphere
Sunil Grover, Managing Partner
Cargoguide EV: $5.5m
CargoSphere EV: $9.2m
WiseTech Global EV/Rev: 15.1x
- 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
True Blue Partners is a M&A advisory firm that serves lower mid-market enterprise software and service companies. For more information please visit www.truebluepartners.com or email us at info @ truebluepartners . com