WiseTech to Acquire Transport Software Provider Envase for $230 Million
25 January 2023 - 9:21AM
Dow Jones News
By Stuart Condie
SYDNEY--Australia's WiseTech Global Ltd. agreed to acquire
U.S.-based transport-management software provider Envase
Technologies for $230 million in what its chief executive said is a
strategically significant move.
The ASX-listed logistics software provider on Wednesday said
that it would pay $161 million from existing cash reserves and
issue $69 million in new shares, under escrow for 12 months. Envase
is owned by a private-investment firm, supply chain investor The
Firmament Group, and a small number of other sellers, WiseTech
said.
Envase provides transport-management system software for
intermodal trucking and landside logistics in North America.
Landside logistics is one of the six key development priorities for
WiseTech's CargoWise platform, WiseTech Chief Executive Richard
White said.
Envase is expected to generate about $35 million in revenue in
2023, with an earnings margin in the low-to-mid 20% range, WiseTech
said.
WiseTech expects to complete the transaction in February. It
said it would comment further on the acquisition on Feb. 22, when
it announces financial results for the six months through
December.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
January 24, 2023 17:06 ET (22:06 GMT)
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