Descartes Systems Group Inc., (TSX:DSG) (Nasdaq:DSGX) of Waterloo, Ontario, has acquired NetCHB, a leading provider of customs filing solutions in the U.S.
Descartes said it acquired NetCHB for “up-front cash consideration” of $40 million, plus potential performance-based consideration. The maximum amount payable under the all-cash performance-based earn-out is $60 million, based on NetCHB achieving revenue-based targets over the first two years post-acquisition, Descartes said.
Arizona-based NetCHB’s cloud-based platform is used by more than 700 customs brokers to connect to the U.S. Customs and Border Protection Automated Broker Interface to “electronically execute both fiscal customs declarations and security filings,” Descartes said.
“As the digitization of the logistics and supply chain industry picks up pace, we continue invest in complementary solutions that add depth and breadth to our Global Logistics Network (GLN),” said Edward J. Ryan, Descartes’ CEO. “NetCHB has a team of deep customs domain experts, scalable and robust technology solutions, and a large group of customers that will benefit from additional solutions available on the GLN to help them manage the lifecycle of shipments.”