SOFTWARE logistics business WiseTech has announced a binding agreement to acquire Texan tech and logistics business e2open in a deal valued at $3.30 a share or a cool $2.1bn in enterprise value.
The e2open business is described as “a leading provider of SaaS-based solutions in the global logistics value chain”, ‘Saas’ standing for software as a service.
In a statement, WiseTech said there was “little overlap” between the two businesses, allowing them to provide complementary services to customers, products and markets.
The e2open business is based in Addison, Texas with operations in more than 20 countries, providing a connected supply chain software platform that enables companies to transform the way they make, move and sell goods and services.
WiseTech Global founder Richard White said acquiring e2open was “a strategically significant step in achieving our expanded vision to be the operating system for global trade and logistics”.
“E2open brings to WiseTech several well established complementary products,” he said.
“This will enable WiseTech to create a multi-sided marketplace that connects all trade and logistics stakeholders to efficiently offer and acquire services, removing complex disconnected processes and driving visibility, predictability and cost savings through the value chain.”
E2open chief executive Andrew Appel said the two businesses had “complementary products across transport, logistics, supply and demand ecosystems” and both were committed to improving the efficiency, productivity and security of global supply chains.
“This strategic combination empowers our people, and our customers who make, move, and sell goods and services to unlock new levels of efficiency and sustainability,” Mr Appel said.
“As the connected supply chain platform, we are excited to join forces with WiseTech to create a truly global, intelligent logistics ecosystem as we jointly lead the digital transformation of our industry.”
According to WiseTech, the deal is part of WiseTech’s strategy to continue to accelerate product development and ecosystem reach through a pro-active acquisition program.
The acquisition price, transaction costs and working capital requirements are to be bankrolled through a new $3bn “fully underwritten debt facility”.