Waterloo, Ontario—June 2, 2014—Descartes Systems Group, a global provider of uniting logistics-intensive businesses in commerce operating the Global Logistics Network (GLN), acquired Customs Info LLC, a U.S.-based provider of trade data content, to power global trade management (GTM) systems and streamline global trade automation.
Customs Info provides comprehensive 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. This trade data populates GTM systems, including SAP GTS 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 tool used by thousands of trade professionals, as well as a software-as-a-service (SaaS)-delivered classification solution to help trade professionals and multi-national shippers quickly build and easily maintain complex classification databases for their operations around the world. 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 multi-national shippers, logistics intermediaries and transportation carriers to look to source, collaborate on and supply trade data," said Edward J. Ryan, Descartes' CEO. "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."
"With highly recurring subscription revenues and close relationships with GTM system providers, Customs Info is the sensible platform for this expansion of the 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 trade data, currently covering over 160 countries, our immediate focus is to connect Customs Info to the GLN and broader Descartes community."
Customs Info is headquartered in Salt Lake City, Utah. Descartes acquired Customs Info for up-front consideration of US $41.5 million, net of working capital, plus potential performance-based consideration.
The up-front consideration is comprised of $36.1 million in cash, $20 million of which was drawn from Descartes' existing acquisition line of credit, and 416,437 Descartes common shares, which are subject to certain restrictions on resale. 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. Any earn-out is expected to be paid in fiscal 2016.