Canadian logistics software provider Descartes Systems Group announced Jan. 6 its acquisition of Supply Vision, a supplier of shipment management solutions to North American Logistics Service Providers (LSPs). Descartes acquired Supply Vision for approximately $12 million in an all-cash transaction, according to a news release.
Based in Phoenix, Supply Vision has been providing LSPs with modular applications that help coordinate shipments — from quoting, routing and booking through to final delivery — for over 20 years.
“The momentum for digitization in the LSP community continues to accelerate,” Scott Sangster, General Manager — Logistics Services Providers at Descartes, said. “We see an opportunity to combine the Supply Vision capabilities with the Global Logistics Network and make even more solutions available for the wider LSP community.”
“The Supply Vision acquisition complements our recent investments in QuestaWeb, Kontainers and Portrix, as we look to broaden our footprint for LSPs,” Descartes CEO Edward Ryan said. “We’re looking forward to working with the Supply Vision customers, partners and team of domain experts to continue to help LSPs digitize their operations and manage the lifecycle of shipments in a secure, efficient and sustainable manner.”
Also included in Waterloo, Ontario-based Descartes’ purchase of Supply Vision is potential performance-based consideration. The maximum amount payable under the all-cash performance-based earnout is $3 million, based on Supply Vision achieving revenue-based targets in each of the first two years following the acquisition, according to the release. Any earnout is expected to be paid in fiscal 2025 or 2026.