Supply chain software provider Descartes announced Wednesday it has acquired Assure Assist, which does business as MyCarrierPortal (MCP). The company provides technology allowing brokers to accurately identify and authenticate carriers. Descartes paid $24 million upfront and has committed to pay another $6 million in earnout based on the combined entity achieving certain revenue targets over the next two years.
“Carrier fraud and cargo theft is an ongoing problem in the transportation industry. This acquisition is another investment to help enable improved Know-Your-Carrier (KYC) capabilities that are critical to improve supply chain performance and fraud reduction,” said Dan Cicerchi, general manager of transportation management at Descartes, in a news release.
Atlanta-based MCP helps shippers and brokers with carrier onboarding and risk monitoring. Users can establish carrier requirements and screen carriers for suitability based on various risk and compliance metrics. The service is designed to ensure “legitimacy, insurance compliance, and an acceptable safety record.” Selected carriers on the platform are continually monitored for compliance to the set risk tolerance.
Ontario, Canada-based Descartes (NASDAQ: DSGX) funded the transaction with cash on hand.
“The combination of MCP and our Descartes MacroPoint FraudGuard tool presents a differentiated solution for our customers to efficiently onboard carriers while enhancing visibility and compliance, and reducing fraud risk,” Cicerchi said.
This is Descartes’ fourth acquisition of the year. It acquired shipment management solutions provider BoxTop Technologies for $13 million in June, trade compliance provider OCR Services in March and customs and regulatory compliance company Aerospace Software Developments in April. The latter two deals totaled $150 million.
