Four Soft Acquires Netherlands-based CargoMate

Indian SCM solution provider gains transportation, freight forwarding apps; builds European presence

Indian SCM solution provider gains transportation, freight forwarding apps; builds European presence

Hyderabad, India — October 15, 2004 — Four Soft Limited (4S), a provider of transportation, logistics and supply chain management software solutions to large enterprises, has acquired CargoMate, a Netherlands based transportation and freight forwarding software solutions company.

Under the terms of the transaction, which was approved by both companies' boards of directors, the transaction value will be approximately $1.9 million. CargoMate stockholders will receive 87.5 percent in cash and 12.5 percent in form of common stock of Four Soft. The transfer of shares has been completed, and the subsidiary will be renamed as Four Soft B.V.

CargoMate has over 14 years of experience and 50 customers in the Cargo transportation industry, with a strong presence in the Netherlands and other European countries. CargoMate's proprietary software includes solutions for transportation, freight forwarding and customs compliance.

This acquisition enables Four Soft's entry into the small and medium logistics and supply chain management service providers market in Europe and globally, Four Soft said in announcing the acquisition.

"The acquisition of CargoMate fits Four Soft's overall strategy of marketing a suite of related premium enterprise software solutions for logistics and supply-chain management vertical, and will allow synergistic cross selling opportunities for both the companies," said Palem Srikanth, Four Soft's managing director. "It complements both the businesses, in terms of geographical presence and target industry segment."

Srikanth said that CargoMate's established network and strong presence in European markets will strengthen the market position of 4S as a global SCM solutions provider.

Gé Pijnappel, CargoMate's president and CEO, said that the acquisition represented a step forward in his company's strategic growth plan and would allow CargoMate to provide its clients a much broader scope of services and offerings.

"Four Soft has a broad suite of products," Pijnappel said. "CargoMate has an excellent sales and support team in Europe, with a very wide installed customer base. The merger of these two operations brings the best technology, an established customer base and a powerful management team together. This presents a wider reach and greater opportunities to the joint operation in the global market."

Based in Hyderabad, India, Four Soft has a customer base that includes EGL Global Logistics, Seko Worldwide, S-Net Freight W.T. Limited and Century Logistics. CargoMate's customers include UTi, Kintetsu World Express, TNT, DHL, Panalpina, Menlo Worldwide, KLM and Frans Maas in Europe.