Descartes acquires Kontainers
“We’ve worked very hard with some of the world’s top logistics companies to create an optimal digital customer experience,” said Graham Parker, co-founder of Kontainers and now VP Sales Digital Freight Solutions at Descartes. “Our team of domain experts is thrilled to combine with Descartes, which will give us the opportunity to reach a broader audience much more quickly. When added to the Global Logistics Network, we’ll also have the ability to offer a pre-integrated solution that combines Kontainers digital freight execution with Descartes’ rate management and forwarder enterprise systems.”
“The last few months have shown how quickly the world can change, and the shift to digitization is accelerating as a result,” said Edward J. Ryan, Descartes’ CEO. “Logistics services providers operate on tight margins. Those that don’t move quickly to digitize their customer experience will be faced with higher costs to serve. Without the proper real-time connections between client-facing platforms and the quoting, rating and booking systems that this digitization brings, LSPs will struggle to efficiently meet customer demand in today’s dynamic market. We’re looking forward to working with the Kontainers customers, partners and team of domain experts to help the logistics community capitalize on this opportunity.”
Kontainers is headquartered in the UK. Descartes acquired Kontainers for total consideration of up to $12 million, with up-front consideration of $US 6.0 million, plus potential performance-based consideration. The up-front consideration was satisfied from cash on hand. The maximum amount payable under the all-cash performance-based earn-out is $US 6.0 million, based on Kontainers achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2022 and fiscal 2023.