Descartes Acquires 3GTMS
Strengthening Transportation Management Capabilities
WATERLOO, Ontario and ATLANTA - Descartes Systems Group (TSX: DSG) (NASDAQ: DSGX), recognized as a leader in uniting logistics-driven businesses, has made a strategic move by acquiring 3GTMS, a prominent supplier of transportation management solutions. This acquisition marks a significant enhancement of Descartes' existing capabilities, which are essential for shippers and logistics service providers.
The Impact of 3GTMS Solutions
3GTMS, headquartered in Columbus, Ohio, offers a suite of transportation management solutions that leverage cloud technology and a broad array of carrier networks. Their services are designed to help clients reduce costs, boost customer satisfaction, and increase operational efficiency. Companies such as shippers, third-party logistics providers, and freight brokers can utilize 3G’s advanced platform to optimize domestic over-the-road shipments. The platform includes comprehensive tools for planning, rating, consolidation, and routing, addressing every aspect of the shipment lifecycle.
Quotes from Leadership
Andrew Roszko, Chief Commercial Officer at Descartes, expressed the strategic fit by stating, “3G’s solution footprint for freight in North America is highly complementary. It brings robust domestic transportation management capabilities across truckload, less-than-truckload (LTL), and parcel services.” This acquisition is expected to extend Descartes' reach among carriers in North America, particularly by integrating a network of API-connected LTL carriers. Roszko highlighted the potential for combined tools and networks to deliver enriched value to their clients.
CEO Edward J. Ryan added, “Much like Descartes, 3G has been building solutions that connect shippers, carriers, and logistics service providers to effectively digitize and manage shipment lifecycles.” Ryan emphasized their eagerness to collaborate with 3G’s experienced team to merge product offerings and welcome 3G’s partners and customers into the Descartes ecosystem.
Financial Details of the Acquisition
Descartes acquired 3GTMS for approximately $115 million, financed through cash reserve holdings. The legal and financial advisement for 3GTMS was handled by Gibson, Dunn & Crutcher LLP and Lincoln International LLC respectively, while Morgan, Lewis & Bockius LLP alongside Centerview Partners LLC advised Descartes on the deal.
About Descartes Systems Group
As a forefront provider in on-demand, software-as-a-service solutions, Descartes is dedicated to enhancing the productivity, security, and sustainability of logistics-intensive businesses. Their comprehensive solutions allow customers to efficiently route, track, and improve the compliance and performance of their delivery systems. The company’s services range from shipment planning to transportation invoice management and involve participation in a global collaborative multimodal logistics community.
With headquarters in Waterloo, Ontario, Descartes operates through a network of offices and partners globally. For more information, individuals can visit the company’s website or connect with Descartes on LinkedIn and X (Twitter).
Investor Relations Contact
Laurie McCauley
(519) 746-2969
investor@descartes.com
Frequently Asked Questions
What is the purpose of Descartes acquiring 3GTMS?
The acquisition aims to enhance Descartes' transportation management capabilities, supporting shippers and logistics service providers.
How does 3GTMS improve transportation management?
3GTMS utilizes a modern cloud-based system and a wide carrier network, offering comprehensive solutions for optimizing shipments.
What is the financial value of the acquisition?
Descartes acquired 3GTMS for approximately $115 million, funded by cash on hand.
Who were the advisors for this acquisition?
Legal and financial advisement for 3GTMS was provided by Gibson, Dunn & Crutcher LLP and Lincoln International LLC. Descartes was advised by Morgan, Lewis & Bockius LLP and Centerview Partners LLC.
How can customers benefit from this acquisition?
Customers will benefit from enhanced tools and expanded network reach, facilitating better logistics and transportation management solutions.
