WiseTech Global acquires Envase Technologies for $230mn
Envase being bought from private investment firm and supply chain investor Firmament & other sellers
WiseTech Global, the developer of leading logistics execution software CargoWise, has acquired Envase Technologies (Envase), a leading provider of transport management system software for intermodal trucking, drayage (container haulage) and landside logistics in North America for $230 million.
"Envase is being acquired from private investment firm and supply chain investor Firmament, and a small number of other sellers," says a release from WiseTech.
Envase’s solutions for carriers automate and provide visibility for the movement of containers across all aspects of import and export haulage operations from port and rail terminals to destination. Envase’s more than 1,300 customers across North America include trucking companies, ports, depots, and warehouses. Envase is expected to generate approximately $35 million of revenue for the calendar year 2023 with an EBITDA margin in the low to mid 20 percent range, the release said.
“This is a strategically significant acquisition in landside logistics, which extends and strengthens our position in one of our six key CargoWise development priority areas, and we’re extremely pleased to have the Envase team join the WiseTech Global group," says Richard White, Founder and CEO, WiseTech Global.
Larry Cuddy, Jr, CEO, Envase adds: “This deal is an exciting development for both the Envase and WiseTech customer bases, and our team. Joining the WiseTech Global group gives Envase the scale and additional resources needed to make a bigger impact. Over the past few years, we have assembled and integrated a powerful suite of landside logistics solutions. Combined with the strength and size of WiseTech and its CargoWise platform and depth in international logistics, we have a powerful platform that we expect to further increase capacity and utilisation and drive innovation in what is an intensely complex and highly fragmented ecosystem. The Envase team is grateful for the support of Firmament over the years and for their vision to establish Envase as a leader in landside logistics.”
WiseTech will fund the transaction via a combination of 70 percent cash ($161 million) and 30 percent new WiseTech Global shares issued to the vendors (equivalent to $69 million). The acquisition is expected to complete in February 2023. In addition, expected one-off transaction costs of approximately $10 million will be funded from existing cash reserves, the release added.