Descartes acquires XPS Technologies
Strengthens e-commerce shipping capabilities on the global logistics network
Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, announced that it has acquired XPS Technologies (XPS), a leading provider of e-commerce multi-carrier parcel shipping solutions.
XPS provides its cloud-based multi-carrier parcel shipping solutions directly to small-, medium- and large-sized e-commerce shippers. It also provides a white-label shipping platform to logistics services providers. The XPS platform helps customers streamline their e-commerce 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 with leading e-commerce marketplaces, ERP providers, and supply chain platforms.
"We remain committed to serving the e-commerce market and we believe that scale matters. Combining with XPS adds e-commerce 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 e-commerce retailers will be the major enterprises of tomorrow, and our integrated e-commerce shipping and fulfillment solutions are designed to help these businesses through all phases of growth."
"XPS complements our significant recent investments in the e-commerce fulfillment 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 e-commerce 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.
Descartes is a leading company providing on-demand, software-as-a-service solutions focused on improving the productivity, performance, and security of logistics-intensive businesses.