Descartes Systems Group has signed a definitive agreement to acquire the businesses run by the Management Systems Resources Inc. group of companies operating under the names Visual Compliance, eCustoms and MSR, collectively known as Visual Compliance.
Visual Compliance provides software solutions and services to automate customs, trade and fiscal compliance processes, with a focus on denied and restricted party screening processes and export licensing. While based in Canada, the company serves over 2,000 customers with over 67,500 subscribers operating in over 100 countries.
"The penalties for doing business with sanctioned parties can be far reaching and severe," says Ken Wood, EVP product management at Descartes. "By adding Visual Compliance's solutions and domain expertise to our existing Descartes MK Data denied parties screening business and Global Logistics Network, we're in an even stronger position to help our customers navigate the trade compliance and landscape while managing the full life cycle of their shipments."
Denied/restricted party screening is the review of people, goods services and/or commodities against comprehensive lists published by governments and international organizations identifying people, organizations and country with whom it is illegal or restricted to transact business. In the international trade context, compliance with these sanction lists is actively enforced by governments around the world, with consequences including large fines, revocation of export privileges and/or criminal prosecution. Descartes and Visual Compliance provide data, content and solutions to customers and partners to enable comprehensive global trade compliance reviews to be completed.
"Trade compliance is a critical issue for our Global Logistics Network customers and our United by Design partners. This is especially so in the current environment where trade agreements are being re-negotiated, tariffs and duties are changing at a rapid pace, and sanctions on restricted or denied parties are being increasingly enforced," says Edward J. Ryan, Descartes' CEO. "We've had tremendous historical success in combining with higher-margin trade data content businesses, like Visual Compliance, to help our partners and customers better manage the increasing complexities of international trade. We're very excited to add Visual Compliance to the Global Logistics Network and further strengthen the value we can bring to our customers and partners."