Global logistics solutions group, WiseTech Global, announced the acquisition of Pierbridge, a leading parcel shipping transportation management solution (TMS) provider to medium and large enterprises in the United States.
Headquartered in Massachusetts, with development offices in the UK and Finland, Pierbridge offers an enterprise-class, multi-carrier, parcel shipping solution, which streamlines carrier selection, booking, label printing, tracking, invoice reconciliation and BI reporting. Pierbridge provides its parcel shipping TMS direct to customers and through solutions providers including Pitney Bowes, Logistyx and others. Pierbridge’s technology automates many large shipping operations across the manufacturing, healthcare, financial, technology and e-commerce sectors for end-users including Overstock.com, Siemens, US Homeland Security, BNY Mellon Bank, Texas Instruments, Genentech, Mazda, Home Depot and Menards.
WiseTech Global Founder and CEO, Richard White, said “E-commerce is driving significant parcel shipment growth internationally and domestically. Pierbridge’s parcel shipping TMS offering allows freight forwarders, warehouses and shippers, such as online retailers, to more efficiently manage high volumes of parcel shipments, and will enable our customers to ship with US-based global couriers. Pierbridge’s parcel shipping TMS is a scalable technology we can converge and expand with our nextgeneration e-commerce solutions as we drive deeper into global e-commerce fulfilment.”
“Across the WiseTech Global group, we are building out the cargo chain ecosystem to deliver real-time visibility, control over margins, faster movement, more efficient use of resources and error reduction across all transport modes for our customers. Bringing the Pierbridge parcel shipping TMS expertise and multi-region development teams into the WiseTech Global group now, expands and accelerates the development of our scalable high-volume domestic and international fulfilment e-commerce solutions. Along with our deep cross-border and international logistics capability and global execution platform, this transaction ensures we are well-placed to solve the increasingly large international e-commerce problem set.”
The purchase cost comprises ~$37.0m upfront with a further multi-year earn-out potential of up to ~$22.4m related to business and product integration, and revenue performance1 . With 2017 annual revenue of ~$9.3m and ~$0.1m contribution to EBITDA, this transaction, while of strategic value, is not material to the WiseTech Global group2 . Pierbridge is expected to be consolidated into WiseTech Global accounts from July 2018.
Along with our recent acquisitions in Canada, France, Belgium, Ireland, Germany, Italy, Turkey, North America, Argentina, the Netherlands, Brazil, Uruguay, Taiwan and Australasia, this adjacency transaction is in line with our stated strategy of accelerating long-term organic growth through targeted, valuable acquisitions.
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