The purchase has an up-front consideration of $21 million with a maximum potential performance-based earn-out of $9 million.
Logistics software company Descartes Systems Group announced Monday it had acquired Core Transport Technologies NZ Limited for an up-front consideration of $21 million plus potential performance-based consideration.
CORE, headquartered in Nelson, New Zealand, provides an electronic transportation network that gives global air carriers and ground carriers hipment scanning and tracking solutions. CORE’s network allows customers to track international mail, parcel and cargo shipments as well as U.S. domestic mail and parcel shipments, and its solutions use mobile technologies and data analytics to help customers automate processes, the statement announcing the acquisition said.
The maximum amount payable under the all-cash performance-based earn-out is $9 million, which is based on CORE achieving revenue-based targets in each of the first two years after the acquisition. Any earn-out is expected to be paid in the fiscal years 2021 and 2022.
“The CORE acquisition complements our recent investment in Velocity Mail, helping us better serve the logistics service provider community working with postal authorities around the world,” said Ken Wood, Descartes’ executive vice president of product management, in a statement. “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.”
Descartes, headquartered in Waterloo, Ontario, Canada, purchased Denver-based Velocity Mail in June 2018 for $25.5 million in cash.
The purchase of CORE is Descartes’ second acquisition of 2019. It completed its acquisition of Visual Compliance in February for an approximate price of $250 million.