December 08, 2014: Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader in uniting logistics-intensive businesses in commerce, has acquired e-customs Inc. ("e-customs"), a leading provider of electronic security and fiscal customs filing solutions in the UK.
e-customs' cloud-based solution, Webdecs, provides both shippers and logistics service providers with a wide range of customs capabilities to cost effectively comply with UK fiscal filing and security filing requirements. e-customs' modular offering is designed to reduce complexity, increase automation, and help to make the end-to-end customs declaration process easy. Importers and exporters can leverage default and client-specific standing data, declaration templates, historical filings, on-screen tips and system validations to increase speed and accuracy in the filing process.
"By combining with e-customs, we've deepened our UK expertise and added more robust capabilities to our global Customs and Regulatory Compliance solution portfolio. It also strengthens Descartes' position as a trusted technology partner for customers requiring improved shipment management and customs compliance across the globe," said Edward Ryan, CEO of Descartes. "We're also excited by the opportunity to help e-customs' installed base of customers run more efficient and profitable logistics operations by providing them access to the complementary solutions available on Descartes' Logistics Technology Platform."
Descartes acquired e-customs for up-front consideration of GBP 5.8 million (approximately USD $9 million at December 5, 2014), plus potential performance-based consideration. The maximum amount payable under the all-cash performance-based earn-out is GBP 0.8 million (approximately USD $1.2 million at December 5, 2014), based on e-customs achieving revenue-based targets over a one year period. Any earn-out is expected to be paid in fiscal 2016.
On December 8, 2014, Descartes also announced its acquisition of Pentant Limited ("Pentant"), a leading UK-based certified Community System Provider (CSP) offering customs connectivity and import/export inventory control solutions for ocean, truck and air cargo. Prior to the acquisition, e-customs and Pentant were independently operated companies under common control of several private UK investors.