Descartes Systems Group, a maker of logistics and delivery software, today disclosed plans to acquire E-Transport Inc., a developer of software for the transportation industry.
The companies say they will integrate their products to help their ground and ocean transportation customers track and manage shipments electronically. With the deal, Descartes, which primarily serves ground transportation carriers, will have access to a broader range of clients.
According to the terms of the acquisition, Descartes will issue $80 million in stock to privately held E-Transport. Once the acquisition closes in March, E-Transport will become a subsidiary of Descartes and will continue to operate out of its Pittsburgh headquarters and other offices.
Robert M. Ryan, E-Transport's CEO and co-founder, said the acquisition was the fastest way to expand his company's customer reach and service offerings. "We thought the best way to conquer the business-to-business market for the multimodal transportation industry was to go with the bigger, more powerful, publicly traded company."