Today, Descartes, the global leader in uniting logistics-intensive businesses in commerce, announced that it has acquired Core Transport Technologies NZ Limited (CORE), an electronic transportation network that provides global air carriers and ground handlers with shipment scanning and tracking solutions.
CORE has connected commercial airlines, ground handlers and the wider logistics community with trading partners and government postal authorities around the world for more than 10 years. Customers use CORE's network to accurately track international mail, parcel and cargo shipments as well as US domestic mail and parcel shipments. CORE's solutions leverage mobile technologies and data analytics to help customers automate processes and increase operational efficiency.
"As US domestic and international ecommerce continues to grow, more demands are being placed on carriers and their partners to deliver efficiently and report events in real-time," said Ken Wood, EVP of Product Management at Descartes. "The CORE acquisition complements our recent investment in Velocity Mail, helping us to better serve the logistics service provider community working with postal authorities around the world. CORE's solutions also extend beyond mail and parcel shipment tracking, with air cargo tracking solutions that we can add to our Global Logistics Network."
"We continue to look for opportunities to add customers, solutions and content to our Global Logistics Network to help our customers manage the lifecycle of shipments," said Edward J. Ryan, Descartes' CEO. "By combining with CORE, we're strengthening our position in the growing domestic and global ecommerce market. We're also adding new solutions to our Descartes Global Air Messaging Gateway that we believe will present a compelling opportunity for our global air cargo community to enhance real-time tracking and visibility of air shipments."
CORE is headquartered in Nelson, New Zealand. Descartes acquired CORE for up-front consideration of $US 21.0 million, plus potential performance-based consideration. The up-front consideration was satisfied with cash from Descartes' existing acquisition line of credit. The maximum amount payable under the all-cash performance-based earn-out is $US 9.0 million, based on CORE achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2021 and fiscal 2022.
More Info: https://www.descartes.com/