The logistics and trade software provider Descartes Systems Group has acquired Salt Lake City-based Customs Info LLC, a U.S.-based provider of trade data content for global trade management (GTM) systems, for $41.5 million, the company said Monday.
Customs Info provides trade data and related research tools to more than 800 multi-national shippers to help them reduce operating costs, improve customs compliance, and accelerate supply chain speed.
The trade data populates GTM systems, including those from SAP and Oracle GTM, and includes trade tariffs, duties, regulations, trade agreements, rules of origin, and other trade-related content. Customs Info also provides an online global trade research tools used by thousands of trade professionals, as well as a SaaS-delivered classification solution to help trade professionals and multinational shippers quickly maintain complex classification databases. Customs Info also provides duty and tax content to some of the world’s largest e-commerce sites.
"The Global Logistics Network is the logical place for multinational shippers, logistics intermediaries and transportation carriers to look to source, collaborate on and supply trade data," said Edward J. Ryan, Descartes’ chief executive officer. "Over 10,000 customers use the GLN to manage and execute shipments every day. Now, by combining trade data with that trade flow, our customers can expand their use of the GLN to also strategically plan and manage their delivery and supply chains.”
The purchase price included $36.1 million in cash, $20 million of which was drawn from Descartes’ existing acquisition line of credit, and 416,437 Descartes common shares.
The price could go higher with potential performance-based considerations. The maximum amount payable under the all-cash performance-based earn-out is $3.9 million, based on Customs Info achieving revenue-based targets in calendar 2014.
“With highly recurring subscription revenues and close relationships with GTM system providers, Customs Info has been a high-growth, premium business and is the sensible platform for this expansion of (Descartes’) Global Logistics Network’s utility and relevance to the shipper community," said Scott Pagan, Descartes’ president and chief operating officer. “As Customs Info continues to invest in expanding its market-leading trade data, currently covering over 160 countries, our immediate focus is to connect Customs Info to the GLN and broader Descartes Community.”