Descartes acquires Pixi Software for $10.4 million

Descartes Systems Group, the Canadian logistics software provider, has acquired Pixi Software GmbH, paying US$10.4 million for the provider of technology solutions for e-commerce order fulfillment and warehouse management.

Munich, Germany-based Pixi makes software that helps its customers automate processes originating from online orders and has a large installed base including hundreds of e-commerce businesses in Europe.

Pixi's platform collects order information from e-commerce sites, translates the data into a scanner-driven pick-and-pack process within the warehouse, initiates the shipment to the customer, and synchronizes all of the information with the customer's financial system for invoicing and shipment tracking, Waterloo, Ontario-based Descartes said.

By acquiring Pixi, Descartes gains a warehousing and order-fulfillment tool that complements its foundation in providing logistics and transportation applications, said Chris Jones, Descartes' executive vice president for professional services and marketing.

Descartes plans to market the new capabilities specifically to small and medium-sized businesses (SMBs), offering them a cloud-based, pay-as-you-go model that allows growing e-commerce firms the ability to choose from Descartes' menu of logistics services.

"We want to be broad enough that if they have a logistics issue, we have the breadth to solve that, and then to augment that with additional services such as customs filings, carrier messaging, denied-party screening, and other solutions in our Global Logistics Network," Jones said.

The acquisition will provide Descartes with a footprint in Germany. The company has more than 400 employees in the Netherlands, Belgium, France, Spain, and Scandinavia.

The acquisition is the latest in a string of purchases for Descartes and marks the company's 31st acquisition since 2006. Last year, Descartes bought MK Data Services LLC, a denied-party screening application provider, BearWare Inc., a product-tracking and inventory-replenishment platform, and Oz Development Inc., a supply chain automation tool provider.