Wallenius Wilhelmsen, the global finished vehicle logistics provider, has signed an agreement to acquire 70% of the membership interest in Syngin Technology for an initial purchase price of USD 22 million on a cash and debt free basis.
"The future of logistics lies in combining digital services, physical assets and a deep understanding of logistics flows. With Syngin we boost our digital capabilities, setting us up to better support the changes we see in our customers' needs for the future", says Craig Jasienski, President and CEO of the Wallenius Wilhelmsen group.
Syngin is a leading provider of automated logistics solutions
for disposition of used vehicles through an electronic marketplace currently operating in the US and Canadian market.
Syngin streamlines the movement of vehicles handled by fleet leasing companies and remarketers to auction houses through a virtual marketplace that matches these stakeholders with transportation providers
and repair centers. Using a holistic value chain approach and applying re-engineered processes coupled with an integrated software platform
, the system enables highly efficient and cost-effective transportation for the unified eco-system around used fleet vehicles.
The acquisition of Syngin marks the entry into the Full Life Cycle Logistics space for Wallenius Wilhelmsen and lays a solid foundation for growth. The combined strength of Wallenius Wilhelmsen Solutions (WW Solutions) and Syngin represents a significant opportunity to scale the business, not only within the current scope, but also into adjacent customers and geographies. It is also an important step in realizing WW Solutions' ambition to develop and deploy digital solutions to help customers manage their business better, faster and smarter.
"I am thrilled about the acquisition of Syngin. In late 2017 we announced an ambitious strategy to offer "Full Life Cycle Logistics" services and now six months in we have made our first acquisition in this space. The joint capabilities of WW Solutions and Syngin represent a unique opportunity for growth both before and after the vehicle's first point of sale," says Ray Fitzgerald, COO of WW Solutions.
The agreed initial purchase price of USD 22 million will be adjusted upwards if performance in 2018 exceeds certain threshold targets. As such, the expected purchase price for Syngin is expected to end in the area of USD 30 million in total. Current owners will maintain an ownership stake of 30% and stay highly involved in the business for the foreseeable future.
The transaction will be financed through existing credit facilities and available cash.