Descartes Acquires XPS Technologies
June 06 2022 - 7:00AM
Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader
in uniting logistics-intensive businesses in commerce, announced
that it has acquired XPS Technologies (XPS), a leading provider of
ecommerce multi-carrier parcel shipping solutions.
XPS provides its cloud-based multi-carrier
parcel shipping solutions directly to small-, medium- and
large-sized ecommerce shippers. It also provides a white-label
shipping platform to logistics services providers. The XPS platform
helps customers streamline their ecommerce supply chain and reduce
transportation costs by automatically importing orders, comparing
carrier rates, printing shipping labels for all major carriers, and
tracking through final delivery. The XPS platform is even more
powerful with its integrations to leading ecommerce marketplaces,
ERP providers and supply chain platforms.
“We remain committed to serving the ecommerce
market and we believe that scale matters. Combining with XPS adds
ecommerce domain expertise, advanced parcel shipping technology and
a community of more than 10,000 customers,” said Andrew Roszko, EVP
Commercial Operations at Descartes. “Many of today’s small and
medium ecommerce retailers will be the major enterprises of
tomorrow, and our integrated ecommerce shipping and fulfilment
solutions are designed to help these businesses through all phases
of growth.”
“XPS complements our significant recent
investments in the ecommerce fulfilment and shipping space,” said
Edward J. Ryan, Descartes’ CEO. “We welcome the XPS customers,
employees and partners to the Descartes community and, together,
look forward to helping the community manage the full lifecycle of
domestic and international ecommerce shipments.”
XPS is headquartered in Utah. Descartes acquired
XPS for up-front consideration of approximately $USD 65.0 million
satisfied with cash on hand, plus potential performance-based
consideration. The maximum amount payable under the all-cash
performance-based earn-out is $USD 75.0 million, based on XPS
achieving revenue-based targets in each of the first two years
post-acquisition. Any earn-out is expected to be paid in fiscal
2024 and fiscal 2025.
About Descartes Systems
Group Descartes (Nasdaq:DSGX)
(TSX:DSG) is the global leader in providing on-demand,
software-as-a-service solutions focused on improving the
productivity, performance and security of logistics-intensive
businesses. Customers use our modular, software-as-a-service
solutions to route, schedule, track and measure delivery resources;
plan, allocate and execute shipments; rate, audit and pay
transportation invoices; access global trade data; file customs and
security documents for imports and exports; and complete numerous
other logistics processes by participating in the world's largest,
collaborative multimodal logistics community. Our headquarters are
in Waterloo, Ontario, Canada and we have offices and partners
around the world. Learn more at www.descartes.com.
Global Investor Contact Laurie McCauley
+1-519-746-6114 x202358investor@descartes.com
Cautionary Statement Regarding
Forward-Looking StatementsThis release contains
forward-looking information within the meaning of applicable
securities laws (“forward-looking statements”) that relate to
Descartes’ acquisition of XPS and its solution offerings; the
potential to provide customers with ecommerce multi-carrier parcel
shipping solutions; other potential benefits derived from the
acquisition of XPS and its solution offerings; and other matters.
Such forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors that may cause the
actual results, performance or achievements to differ materially
from the anticipated results, performance or achievements or
developments expressed or implied by such forward-looking
statements. Such factors include, but are not limited to, the
expected future performance of the XPS business based on its
historical and projected performance as well as the factors and
assumptions discussed in the section entitled, “Certain Factors
That May Affect Future Results” in documents filed with the
Securities and Exchange Commission, the Ontario Securities
Commission and other securities commissions across Canada including
Descartes’ most recently filed management’s discussion and
analysis. If any such risks actually occur, they could materially
adversely affect our business, financial condition or results of
operations. In that case, the trading price of our common shares
could decline, perhaps materially. Readers are cautioned not to
place undue reliance upon any such forward-looking statements,
which speak only as of the date made. Forward-looking statements
are provided for the purposes of providing information about
management’s current expectations and plans relating to the future.
Readers are cautioned that such information may not be appropriate
for other purposes. We do not undertake or accept any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in our
expectations or any change in events, conditions or circumstances
on which any such statement is based, except as required by
law.
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