SOFTWARE developer for the logistics industry WiseTech Global has completed its acquisition of US-based e2open Parent Holdings Inc.
E2open is a supplier of cloud-based trade and supply chains SaaS solutions to some of the world’s biggest companies.
The $3.30 per share in cash equates to an enterprise value of $2.1 billion which is fully debt funded from a new syndicated debt facility which it had announced in May.
In an Australian Stock Exchange announcement WiseTech Global CEO, Zubin Appoo, said the acquisition created value for its shareholders and customers, as well as the trade, supply chain and logistics sector.
“Our team has worked on this acquisition for some time, and we're excited to have the transaction conclude,” Mr Appoo said.
“E2open is a strategic acquisition of a group of valuable products, with a strong customer base, extensive cloud-based network and deeply capable people and products that enable global trade and supply chain.
“The acquisition significantly adds to our total addressable global market with very little product overlap globally.
“Previously, WiseTech’s focus has been mainly on logistics service providers. Now, with e2open’s deep product offerings, domain expertise and customer base, we’re expanding our product offering into global and domestic trade including demand, planning, channel, supply, transportation and logistics for buyers, importers, exporters, shippers, manufacturers and brand owners.
“This is a significant step in achieving our extended vision to be the operating system for global trade and logistics by driving integration, automation and efficiencies across the entire supply chain.”
Mr Appoo said the combination of WiseTch and e2open aimed to create a multi-sided and multi-tiered market where all parties can operate within a connected environment.
“Connecting every step of the international and domestic supply chain process, from order to fulfillment, from supplier to consumer, across all modes of transport and through all major customs borders and trade requirements will benefit our customers and their customers, logistics service providers shippers, importers, exporters, and ultimately the end consumer,” he said.
“This will amplify digitization of the whole supply chain and logistics system, by enabling straight through digital processing and reducing paper-based manual processes, to increase productivity and efficiency.”
WiseTech’s acquisition of e2open is one of more than 55 acquisitions made by the company which now services more than 16,500 of the world’s logistics companies across 195 countries.
It includes 46 of the top 50 global third-party logistics providers and 24 of the 25 largest global freight forwarders worldwide.