Descartes Acquires Localz

Rhea-AI Summary

Descartes Systems Group (TSX:DSG, Nasdaq:DSGX) has acquired the assets of Localz, a technology platform enhancing customer engagement for delivery services, for approximately $6.2 million in cash. This acquisition aims to boost Descartes' final-mile delivery solutions by providing real-time tracking and communication capabilities. The Localz platform allows customers to schedule deliveries and monitor their orders in real-time, improving the overall delivery experience. Descartes plans to integrate Localz's technology into its existing services, enhancing competitive differentiation in the final-mile delivery market. CEO Edward J. Ryan emphasized the importance of excellent delivery experiences for customers and expressed enthusiasm about incorporating Localz's solutions to further improve customer satisfaction.

Positive

• Acquisition of Localz enhances Descartes' final-mile delivery capabilities.
• Localz offers technologies for real-time tracking and customer communication.
• Expected improvement in customer satisfaction and delivery experience.
• Transaction valued at $6.2 million, funded with cash on hand.

Negative

• None.

Adds Advanced Customer Engagement Capabilities to Descartes’ Final-Mile Delivery Solutions

ATLANTA and MELBOURNE, Australia, April 20, 2023 (GLOBE NEWSWIRE) -- Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader in uniting logistics-intensive businesses in commerce, announced that it has acquired the assets of Localz, a technology platform to help engage with customers on the day they’re having goods or services delivered.

The Localz platform combines real-time vehicle location tracking and communications to deliver safe, transparent, customer-centric SaaS solutions that transform the customer delivery experience. End customers can schedule services and deliveries through an online portal, and then follow the progress of their order in real-time with advanced notifications built in. Localz also helps retailers provide a premium, highly efficient “click-and-collect” solution that improves the in-store collection process.

"Descartes continues to invest in final-mile solutions to help our customers offer cost-efficient delivery services that transform the end customer experience,” said Ken Wood, EVP of Product Management at Descartes. “By combining with Localz, we’ve expanded our capabilities so our customers can further differentiate themselves in a highly-competitive final-mile delivery market where delivery excellence is a must-have.”

“A great delivery experience is essential and expected by customers,” said Edward J Ryan, Descartes’ CEO. “End customers demand visibility and choice. Localz has a highly complementary solution to Descartes that dramatically improves the scheduling and day-of-service customer experience. We’re thrilled to welcome the Localz employees, customers and partners into the Descartes family and we look forward bringing this new technology to our wider customer base.”

Localz is headquartered in Melbourne, Australia. Descartes acquired the assets of Localz for approximately $US 6.2 million, satisfied from cash on hand.

About Descartes Systems Group
Descartes is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security, and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world's largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and Twitter.

Global Investor Contact
Laurie McCauley
+1-519-746-6114 x202358
investor@descartes.com

Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relate to Descartes' acquisition of Localz and its solution offerings; the potential to provide customers with final-mile delivery solutions; other potential benefits derived from the acquisition and Localz’s solution offerings; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the expected future performance of the Localz business based on its historical and projected performance as well as the factors and assumptions discussed in the section entitled, "Certain Factors That May Affect Future Results" in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada including Descartes most recently filed management's discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FAQ

What is the significance of Descartes' acquisition of Localz?

The acquisition enhances Descartes' delivery solutions by integrating Localz's real-time tracking and customer engagement capabilities.

How much did Descartes pay for Localz?

Descartes acquired Localz for approximately $6.2 million, satisfied with cash on hand.

What benefits does the Localz platform provide to Descartes customers?

The Localz platform allows for real-time vehicle tracking, customer scheduling, and improved communication during the delivery process.

How will this acquisition impact Descartes' market position?

The acquisition is expected to provide Descartes with a competitive edge in the final-mile delivery market by enhancing customer service offerings.

When was the acquisition of Localz announced?

The acquisition was announced on April 20, 2023.