Descartes Systems Group announced that it has acquired GroundCloud, a cloud-based provider of final-mile carrier solutions and road safety compliance tools.

GroundCloud is a leader in final-mile logistics automation, combining operations, safety and compliance in an integrated platform. Final-mile carriers leverage the platform to receive customer delivery orders, plan and execute routes against those orders, train and monitor drivers on safety and performance, manage assets and resources, and analyze the operating efficiency of their business. GroundCloud’s platform also incorporates video telematics to provide driving event detection and verification, combined with reactive coaching solutions designed to improve safety.

“To deliver safely and efficiently on customer expectations in today’s dynamic market conditions, final-mile carriers need a holistic approach to operations, safety, and compliance,” said Andrew Roszko, Chief Commercial Officer at Descartes. “This challenge is even more complex for the thousands of subcontracted delivery service providers working as agents for larger carriers. GroundCloud helps ensure seamless operations, end-to-end visibility, and standards of safety and compliance are met, including helping final-mile carriers comply with the various safety mandates of large transportation brands.”

“Descartes continues to invest in our final-mile capabilities to make sure that our customers can fulfill orders and meet delivery commitments efficiently with worker and community safety at the forefront,” said Edward J. Ryan, Descartes’ CEO. “When combined with Descartes, we see a tremendous opportunity to leverage GroundCloud’s safety content and compliance solutions across a wider set of industry verticals in our routing and mobile customer base. I’d like to welcome the GroundCloud customers, partners, and team of domain experts to Descartes.”

GroundCloud is headquartered in Minneapolis, Minnesota. Descartes acquired GroundCloud for up-front consideration of approximately $USD 138 million satisfied with cash on hand, plus potential performance-based consideration. The maximum amount payable under the all-cash performance-based earn-out is $USD 80 million, based on the combined business achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2025 and fiscal 2026.