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WiseTech Global Acquires Envase Technologies Leading North American Landside Logistics Software Platform

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SYDNEY–()–Global WiseTech (ASX:WTC), developer of leading logistics execution software CargoWise, today announced the acquisition of Envelope Technologies (Envase), a leading provider of transportation management system software for intermodal trucking, drayage and land logistics in North America in a $230 million transaction. Envase is acquired by private investment firm and supply chain investor Firmament and a small number of other sellers.

Headquartered in the United States, Envase’s solutions for carriers automate and provide visibility for container movement in all aspects of import and export freight operations from port and rail terminals to destination. Envase’s more than 1,300 customers across North America include trucking companies, ports, depots, and warehouses. Envase is expected to generate approximately $35 million in revenue for calendar year 2023 with an EBITDA margin of 20% to 20%.

WiseTech will fund the transaction through a combination of 70% in cash ($161 million) and 30% of new WiseTech Global shares issued to the sellers (equivalent to $69 million). The acquisition is expected to be completed in February 2023. In addition, anticipated one-time transaction costs of approximately US$10 million will be funded from existing cash reserves.

Richard White, founder and CEO of WiseTech Global, said: “This is a strategically significant acquisition in inland logistics, which extends and strengthens our position in one of our top six CargoWise development priority areas, and we are extremely pleased to have Envase join the WiseTech Global group.”

Envase CEO Larry Cuddy, Jr said, “This agreement is an exciting development for both the Envase and WiseTech customer base, as well as our team. Becoming a part of the WiseTech Global group gives Envase the scale and additional resources it needs to make a bigger impact. Over the past few years, we have assembled and integrated a powerful suite of inland logistics solutions. Combined with the strength and scale of WiseTech and its CargoWise platform and depth in international logistics, we have a powerful platform that we expect will further increase capacity and utilization and drive innovation in what is an extremely complex ecosystem. and highly fragmented. The Envase team is grateful for Firmament’s support over the years and their vision to establish Envase as a leader in inland logistics.”

More information about this acquisition and WiseTech’s performance and prospects will be provided during the Company’s semi-annual earnings briefing at 10:00am, February 22, 2023 (AEDT). Please register here.

About WiseTech Global

WiseTech Global is a leading developer and provider of software solutions to the global logistics execution industry. Our customers are over 18,0001 of global logistics companies in more than 170 countries, including 41 of the top 50 global third-party logistics providers and 24 of the top 25 global freight forwarders worldwide2.

At WiseTech, we are tireless on innovation, adding over 4,900 product enhancements to our global platform over the past five years, driving continuous and significant improvements to worldwide supply chains. Our innovative software solutions are renowned for their powerful productivity, extensive functionality, deep integration, deep compliance capabilities, and truly global reach. For more information visit www.wisetechglobal.com And www.cargowise.com.

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1 Includes customers on CargoWise and acquired business platforms whose customers can be counted against installed sites

2 Armstrong & Associates: Global Top 50 3PLs and Top 25 Global Freight Forwarders Ranked by 2021 Logistics Revenue/Gross Revenue and Freight Shipping Volumes – Updated August 4, 2022

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Written by Natalia Chi

Chicago Popular; Chicago breaking news, weather and live video. Covering local politics, health, traffic and sports for Chicago, the suburbs and northwest Indiana.

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