The logistics software company says acquisition will enhance its ability to collect and leverage real-time information.
Descartes Systems Group has acquired PinPoint, an Ontario, Canada-based GPS fleet tracking and mobile workforce management provider.
Descartes, a publicly traded global logistics software company also based in Ontario, purchased PinPoint for an up-front consideration of $15 million Canadian (U.S. $11.5 million), plus potential performance-based consideration.
The up-front consideration was satisfied with C$13 million in cash from Descartes’ existing acquisition line of credit and its common shares, valued at $C2 million. The share consideration is subject to a 24-month hold period and the maximum amount payable under the all-cash performance-based earn-out is C$3 million, based on PinPoint achieving revenue-based targets in each of the first two years post-acquisition. It’s expected that any earn-out would be paid in fiscal 2020 and fiscal 2021.
PinPoint uses technology such as Geotab (telematics) and SkyBitz (trailer tracking) to help its customers collect real-time location information on trucks and mobile workers. Descartes said PinPoint enhances Descartes’ ability to collect and leverage real-time information.
“Gathering real-time information about the location of vehicles continues to be a critical factor for our customers in making strategic decisions about how to deploy their assets,” Descartes CEO Edward Ryan said. “By combining forces with PinPoint, we add scale and domain expertise to our solutions and strengthen our relationships with key partners, such as Geotab and Skybitz.”
Ryan said in early March during the fiscal year 2018 earnings webcast that Descartes would use capital for continued acquisitions and that a lot of acquisition opportunities, both large and small, remained.
Descartes has acquired three other companies in the last year: Velocity Mail in June, Aljex Software in February and MacroPoint in August 2017.
Descartes picks up PinPoint
