Descartes Systems Group, a global company in uniting logistics-intensive businesses in commerce, acquired KSD Software Norway AS (KSD), a Scandinavia-based provider of electronic customs filing solutions for the European Union (EU).
The EU customs compliance market is characterized by a complex framework of member states; each with different regulations, languages and systems. Transportation carriers, logistics intermediaries and shippers have looked to technology partners, like Descartes and KSD, to help them manage this complexity.
KSD brings more than 1,300 customers to Descartes’ Global Logistic Network, with the majority of these companies based in Scandinavia. KSD provides its customers with customs declaration, security filing, transportation management and freight forwarding technology solutions. By combining KSD’s leading EU customs solutions and Descartes’ global community of logistics participants and shipment management solutions, customers now have a single trusted partner to help them manage their shipments across the globe.
“With approximately $10 million of annual recurring revenues that are core to our combined businesses, KSD adds scale for Descartes to serve the wider logistics community,” said Edward Ryan, Chief Commercial Officer at Descartes. “Our Global Logistics Network customers can enhance their own logistics operations with access to KSD’s broad Scandinavian community of logistics participants and EU compliance solutions. Similarly, we’re excited to be able to introduce Descartes’ shipment management portfolio to help KSD’s customers be even more efficient and profitable in their logistics operations.”
KSD is headquartered in Oslo, Norway, with offices in Sweden, Denmark and The Netherlands. The all cash purchase price for the acquisition was approximately $33 million, with Descartes acquiring approximately $2 million. To complete the acquisition, Descartes used approximately $13 million of cash on hand and $20 million from an acquisition line of credit.