Descartes Acquires Customs Info
02 Junio 2014 - 5:00AM
Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader
in uniting logistics-intensive businesses in commerce operating the
Global Logistics Network (GLN), acquired Customs Info LLC, a
leading US-based provider of trade data content to power Global
Trade Management (GTM) systems and streamline global trade
automation.
Customs Info provides comprehensive trade data and related
research tools to more than 800 multi-national shippers to help
them reduce operating costs, improve customs compliance, and
accelerate supply chain speed. This trade data populates GTM
systems, including SAP GTS and Oracle GTM, and includes trade
tariffs, duties, regulations, trade agreements, rules of origin and
other trade-related content. Customs Info also provides one of the
leading on-line global trade research tools used by thousands of
trade professionals, as well as a SaaS-delivered classification
solution to help trade professionals and multi-national shippers
quickly build and easily maintain complex classification databases
for their operations around the world. Customs Info also provides
duty and tax content to some of the world's largest e-commerce
sites.
"The Global Logistics Network is the logical place for
multi-national shippers, logistics intermediaries and
transportation carriers to look to source, collaborate on and
supply trade data," said Edward J. Ryan, Descartes' CEO. "Over
10,000 customers use the GLN to manage and execute shipments every
day. Now, by combining trade data with that trade flow, our
customers can expand their use of the GLN to also strategically
plan and manage their delivery and supply chains."
"With highly-recurring subscription revenues and close
relationships with GTM system providers, Customs Info has been a
high-growth, premium business and is the sensible platform for this
expansion of the Global Logistics Network's utility and relevance
to the shipper community," said Scott Pagan, Descartes' President
& Chief Operating Officer. "As Customs Info continues to invest
in expanding its market-leading trade data, currently covering over
160 countries, our immediate focus is to connect Customs Info to
the GLN and broader Descartes Community."
Customs Info is headquartered in Salt Lake City, Utah. Descartes
acquired Customs Info for up-front consideration of US $41.5
million, net of working capital, plus potential performance-based
consideration. The up-front consideration is comprised of $36.1
million in cash, $20 million of which was drawn from Descartes'
existing acquisition line of credit, and 416,437 Descartes common
shares, which are subject to certain restrictions on resale. The
maximum amount payable under the all-cash performance-based
earn-out is $3.9 million, based on Customs Info achieving
revenue-based targets in calendar 2014. Any earn-out is expected to
be paid in fiscal 2016.
About Descartes
Descartes (TSX:DSG) (Nasdaq:DSGX) is the global leader in
providing on-demand, software-as-a-service solutions focused on
improving the productivity, performance and security of
logistics-intensive businesses. Descartes has over 172,000 parties
using its cloud based services. Customers use our modular,
software-as-a-service solutions to route, schedule, track and
measure delivery resources; plan, allocate and execute shipments;
rate, audit and pay transportation invoices; file customs and
security documents for imports and exports; and complete numerous
other logistics processes by participating in the world's largest,
collaborative multi-modal logistics community. Our headquarters are
in Waterloo, Ontario, Canada and we have offices and partners
around the world. Learn more at www.descartes.com.
About Customs Info
For more information about Customs Info, visit
www.customsinfo.com.
This release contains forward-looking information within the
meaning of applicable securities laws ("forward-looking
statements") that relate to Descartes' solution offering and
potential benefits derived therefrom; Descartes' expected benefits
from the acquisition of the Customs Info business and opportunities
for that business to invest and grow and other matters. Such
forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors that may cause the
actual results, performance or achievements to differ materially
from the anticipated results, performance or achievements or
developments expressed or implied by such forward-looking
statements. Such factors include, but are not limited to,
Descartes' ability to successfully integrate Customs Info and
realize its expected benefits; and the factors and assumptions
discussed in the section entitled, "Certain Factors That May Affect
Future Results" in documents filed with the Securities and Exchange
Commission, the Ontario Securities Commission and other securities
commissions across Canada. Readers are cautioned not to place undue
reliance upon any such forward-looking statements, which speak only
as of the date made. We do not undertake or accept any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in our
expectations or any change in events, conditions or circumstances
on which any such statement is based.
CONTACT: Global Media Contact
Mavi Silveira
+1(800) 419-8495 ext. 202416
msilveira@descartes.com
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