Descartes Signs Definitive Agreement to Acquire Integrated Export Systems Business; Adds a Robust Freight Forwarder and Customs Broker Community Specializing in Processing Shipments Originating in Asia.
Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, has signed a definitive agreement to acquire substantially all of the assets of Integrated Export Systems, Ltd. and IES Asia Limited (collectively referred to as "IES") for approximately US$35 million in cash.
IES provides software-as-a-service solutions that help freight forwarders, non-vessel operating common carriers (NVOCCs), and customs brokers manage their businesses and improve profitability. With offices in New Jersey and Hong Kong, IES delivers its solutions to more than 600 customers with users in over 70 countries worldwide. The company is also a leader in regulatory compliance solutions, where its collaborative security filing solutions connect thousands of logistics service providers who are processing shipments that primarily originate from the Asia Pacific region.
"IES is a market leader in forwarding and customs brokerage systems, and regulatory compliance services," said Edward Ryan, Chief Commercial Officer at Descartes. "By combining the IES solutions with our Logistics Technology Platform, we strengthen our application footprint for forwarders, NVOCCs and customs brokers. We will also add thousands of logistics service providers in Asia to our global logistics community with the potential to drive new transactions over our Global Logistics Network."
IES has developed and deployed its fully-integrated forwarding and customs brokerage enterprise system for more than 20 years. IES's systems process numerous transactions and documents critical to the flow of goods, including warehouse receipts, purchase orders and commercial invoices, which can be made available over Descartes' cloud-based Global Logistics Network. IES customers will also have access to additional shipment execution capabilities such as airfreight bookings, and access to a wider geographic range of regulatory compliance services for shipment security filings in Europe and South America.
"We've been working with the IES team as part of our United by Design partner program for more than 6 years," said Art Mesher, Chairman and CEO at Descartes. "IES has a results-based culture, recurring revenue subscription model and profit discipline that is similar to our own. We're very much looking forward to welcoming them to the Descartes team." The transaction is expected to close during Descartes' fiscal second quarter ending July 31, 2012. The transaction is subject to customary closing conditions.