Descartes Acquires Scandinavia-Based KSD Software
Author: AJOT | May 02 2013 at 08:00 PM | Category: Transport Intermediaries
Adds Robust Scandinavian Logistics Community and Leading EU Electronic Customs Filing Solutions
Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader in uniting logistics-intensive businesses in commerce, acquired KSD Software Norway AS (‘KSD’), a leading Scandinavia-based provider of electronic customs filing solutions for the European Union (‘EU’).
The EU customs compliance market is characterized by a complex framework of member states; each with different regulations, languages, and systems. Transportation carriers, logistics intermediaries and shippers have looked to technology partners, like Descartes and KSD, to help them manage this complexity.
‘EU customs compliance is complex,’ said Svenn Widerberg, CEO of KSD. ‘Our focus is to make the process easier for customers so that they can instead focus on their core businesses. Like us, Descartes is focused on delivering results to customers, and this made a combination with Descartes a logical choice for our customers. We’re thrilled that our customers will now have access to even more solutions and global logistics participants to help them become more efficient.’
KSD brings more than 1,300 customers to Descartes’ Global Logistic Network, with the majority of these companies based in Scandinavia. KSD provides its customers with customs declaration, security filing, transportation management and freight forwarding technology solutions. By combining KSD’s leading EU customs solutions and Descartes’ global community of logistics participants and shipment management solutions, customers now have a single trusted partner to help them manage their shipments across the globe.
‘With approximately USD $10 million of annual recurring revenues that are core to our combined businesses, KSD adds scale for Descartes to serve the wider logistics community,’ said Edward Ryan, Chief Commercial Officer at Descartes. ‘Our Global Logistics Network customers can enhance their own logistics operations with access to KSD’s broad Scandinavian community of logistics participants and EU compliance solutions. Similarly, we’re excited to be able to introduce Descartes’ shipment management portfolio to help KSD’s customers be even more efficient and profitable in their logistics operations.’
KSD is headquartered in Oslo, Norway, with offices in Sweden, Denmark and The Netherlands. The all cash purchase price for the acquisition was NOK 190 million (approximately USD $33 million at May 2, 2013), with Descartes acquiring approximately NOK 11.5 million in working capital (approximately USD $2 million at May 2, 2013). To complete the acquisition, Descartes used approximately USD $13 million of cash on hand and $20 million from an acquisition line of credit.’
Descartes will discuss the transaction, along with its fiscal 2014 first quarter financial results, in a conference call scheduled for Thursday, May 30, at 8 am ET. Designated numbers for the call are +1 (855) 410-0553 for North America or +1 (646) 583-7389 for international, using Participant PIN Code 372668#. (Reuters)