Descartes acquires TMS provider Aljex for $32.4 million

Canadian logistics software provider Descartes Systems Group Inc. said today it acquired transportation management systems (TMS) provider Aljex Software Inc. in a $32.4 million cash deal that extends Descartes' position in freight brokerage by integrating Aljex's systems with the truckload visibility features of Macropoint LLC, which Descartes acquired last August for $107 million.

Somerville, N.J.-based Aljex and Descartes, based in Waterloo, Ontario, have collaborated for a number of years to support brokerage operations, Descartes said. Aljex has 400 customers in North America and executes about three million freight moves per year.

The connectivity between Aljex and Macropoint will allow customers to manage a shipment's life cycle from order creation through execution, Descartes said. Aljex will feed loads for real-time tracking by Macropoint, Descartes said. In turn, Macropoint will provide the tracking information to Aljex's broker customers, according to Descartes.

TMS platforms are in strong demand by brokers and shippers, especially as super-tight truck supply puts a premium on optimal equipment utilization.