Descartes Acquires MyCarrierPortal
Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX) has acquired Assure Assist, Inc., operating as MyCarrierPortal (MCP), for an upfront consideration of approximately $24 million in cash. MCP is a leading provider of carrier onboarding and risk monitoring solutions for the trucking industry. The acquisition aims to enhance Descartes' Know-Your-Carrier (KYC) capabilities, addressing carrier fraud and cargo theft issues in the transportation sector.
MCP's solutions help freight brokers and shippers quickly set up carrier requirements and screen carriers for suitability based on legitimacy, insurance compliance, and safety records. The acquisition complements Descartes' MacroPoint FraudGuard tool, offering a comprehensive solution for carrier onboarding, visibility, compliance, and fraud risk reduction. An additional performance-based earn-out of up to $6 million is possible based on revenue targets in the first two years post-acquisition.
Il gruppo Descartes Systems (TSX:DSG) (Nasdaq:DSGX) ha acquistato Assure Assist, Inc., operante come MyCarrierPortal (MCP), per un considerazione iniziale di circa 24 milioni di dollari in contanti. MCP è un fornitore leader di soluzioni per l'onboarding dei vettori e monitoraggio del rischio per l'industria dei trasporti su strada. L'acquisizione mira a migliorare le capacità di Know-Your-Carrier (KYC) di Descartes, affrontando problemi di frode dei vettori e furto di carico nel settore dei trasporti.
Le soluzioni di MCP aiutano i broker di carico e gli speditori a configurare rapidamente i requisiti dei vettori e a valutare la loro idoneità in base alla legittimità, conformità assicurativa e registri di sicurezza. L'acquisizione completa lo strumento MacroPoint FraudGuard di Descartes, offrendo una soluzione completa per l'onboarding dei vettori, visibilità, conformità e riduzione del rischio di frode. È inoltre possibile un guadagno basato sulle prestazioni fino a 6 milioni di dollari in base agli obiettivi di fatturato nei primi due anni dopo l'acquisizione.
El grupo Descartes Systems (TSX:DSG) (Nasdaq:DSGX) ha adquirido Assure Assist, Inc., que opera como MyCarrierPortal (MCP), por un pago inicial de aproximadamente 24 millones de dólares en efectivo. MCP es un proveedor líder de soluciones de incorporación y monitoreo de riesgos para transportistas en la industria del transporte por carretera. La adquisición tiene como objetivo mejorar las capacidades de Know-Your-Carrier (KYC) de Descartes, abordando los problemas de fraude de transportistas y robo de carga en el sector del transporte.
Las soluciones de MCP ayudan a los corredores de carga y a los embarcadores a establecer rápidamente los requisitos de los transportistas y a evaluar su idoneidad en función de la legitimidad, cumplimiento de seguros y registros de seguridad. La adquisición complementa la herramienta MacroPoint FraudGuard de Descartes, ofreciendo una solución integral para la incorporación de transportistas, visibilidad, cumplimiento y reducción del riesgo de fraude. También es posible un pago adicional basado en rendimiento de hasta 6 millones de dólares según los objetivos de ingresos en los primeros dos años posteriores a la adquisición.
데카르트 시스템 그룹 (TSX:DSG) (Nasdaq:DSGX)는 Assure Assist, Inc.를 인수했습니다. 이 회사는 MyCarrierPortal (MCP)로 운영되며, 약 2천4백만 달러의 초기 현금 지불로 인수되었습니다. MCP는 트럭 운송 산업을 위한 운송업체 온보딩 및 위험 모니터링 솔루션의 선두 제공업체입니다. 이 인수는 데카르트의 Know-Your-Carrier (KYC) 기능을 향상시켜 운송 부문의 운송사 사기 및 화물 절도 문제를 해결하는 것을 목표로 합니다.
MCP의 솔루션은 화물 중개인 및 선주가 운송업체 요구사항을 신속하게 설정하고 합법성, 보험 준수 및 안전 기록에 기반하여 적합성을 평가하는 데 도움을 줍니다. 이 인수는 데카르트의 MacroPoint FraudGuard 도구를 보완하여 운송업체 온보딩, 가시성, 준수 및 사기 위험 감소를 위한 종합 솔루션을 제공합니다. 인수 후 첫 두 해 동안의 수익 목표에 따라 최대 600만 달러의 성과 기반 수익도 가능합니다.
Le groupe Descartes Systems (TSX:DSG) (Nasdaq:DSGX) a acquis Assure Assist, Inc., opérant sous le nom de MyCarrierPortal (MCP), pour une considération initiale d'environ 24 millions de dollars en espèces. MCP est un fournisseur leader de solutions d'intégration des transporteurs et de surveillance des risques pour l'industrie du transport routier. Cette acquisition vise à améliorer les capacités de Know-Your-Carrier (KYC) de Descartes, en s'attaquant aux problèmes de fraude des transporteurs et de vol de cargaison dans le secteur des transports.
Les solutions de MCP aident les courtiers en fret et les expéditeurs à configurer rapidement les exigences des transporteurs et à évaluer leur adéquation en fonction de la légitimité, de la conformité à l'assurance et des dossiers de sécurité. Cette acquisition complète l'outil MacroPoint FraudGuard de Descartes, offrant une solution complète pour l'intégration des transporteurs, la visibilité, la conformité et la réduction des risques de fraude. Un paiement supplémentaire basé sur la performance de jusqu'à 6 millions de dollars est également possible en fonction des objectifs de revenus au cours des deux premières années suivant l'acquisition.
Die Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX) hat Assure Assist, Inc. übernommen, die als MyCarrierPortal (MCP) tätig ist, für eine Vorauszahlung von etwa 24 Millionen US-Dollar in bar. MCP ist ein führender Anbieter von lösungen zur Einarbeitung von Spediteuren und Risikobewertung für die Transportindustrie. Die Übernahme zielt darauf ab, die Know-Your-Carrier (KYC)-Fähigkeiten von Descartes zu verbessern und Probleme wie Spediteursbetrug und Diebstahl von Fracht im Transportsektor anzugehen.
Die Lösungen von MCP helfen Frachtmaklern und Versendern, schnell die Anforderungen für Spediteure festzulegen und die Eignung von Spediteuren auf Basis von Legitimität, Versicherungscompliance und Sicherheitsaufzeichnungen zu überprüfen. Die Übernahme ergänzt das MacroPoint FraudGuard-Tool von Descartes und bietet eine umfassende Lösung für die Einarbeitung von Spediteuren, Sichtbarkeit, Compliance und Risikominderung bei Betrug. Ein zusätzliches leistungsabhängiges Einkommen von bis zu 6 Millionen US-Dollar ist basierend auf den Umsatz-Zielen in den ersten zwei Jahren nach der Übernahme möglich.
- Acquisition enhances Descartes' Know-Your-Carrier (KYC) capabilities
- Complements existing MacroPoint FraudGuard tool for a more comprehensive solution
- Addresses industry-wide issues of carrier fraud and cargo theft
- Potential for additional revenue through performance-based earn-out
- Upfront cash expenditure of $24 million may impact short-term liquidity
- Integration challenges and costs associated with merging MCP's operations
- Potential dilution of focus from core business activities
Insights
Descartes Systems Group's acquisition of MyCarrierPortal (MCP) for
The acquisition of MyCarrierPortal significantly bolsters Descartes' Know-Your-Carrier (KYC) capabilities, a important aspect in today's complex supply chain landscape. By integrating MCP's carrier onboarding and risk monitoring solutions, Descartes addresses a major pain point for freight brokers and shippers: ensuring carrier legitimacy and compliance. This move aligns with industry trends towards increased security and transparency in logistics operations. The combination of MCP with Descartes' existing FraudGuard tool creates a comprehensive solution that could become a standard in the industry, potentially leading to increased market share and customer loyalty for Descartes in the highly competitive logistics technology sector.
Descartes' acquisition of MyCarrierPortal represents a significant step in combating logistics fraud, a growing concern in the industry. By enhancing their fraud prevention capabilities, Descartes is addressing a critical security gap in supply chain operations. The continuous monitoring of carrier compliance offered by MCP's solution adds a dynamic layer of security that goes beyond initial vetting. This proactive approach to risk management could potentially reduce financial losses and reputational damage for Descartes' clients. However, the effectiveness of this solution will depend on the quality of data integration and the speed at which Descartes can adapt to evolving fraud tactics in the logistics sector.
Adds Carrier Onboarding and Risk Monitoring Solutions to the Global Logistics Network
WATERLOO, Ontario and ATLANTA, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader in uniting logistics-intensive businesses in commerce, announced that it has acquired Assure Assist, Inc., doing business as MyCarrierPortal (“MCP”), a leading provider of carrier onboarding and risk monitoring solutions for the trucking industry.
Based in the US, MCP’s solutions help freight brokers and shippers quickly set up carrier requirements through an onboarding platform that gathers information on carriers and screens them for suitability to deliver loads/shipments based on the broker’s risk and compliance criteria. Truck carriers are screened for legitimacy, insurance compliance, and an acceptable safety record. Carriers that are onboarded to the platform are monitored on an ongoing basis to help ensure continued compliance. If a carrier falls out of compliance, the customer is notified to take appropriate action with that carrier.
“Carrier fraud and cargo theft is an ongoing problem in the transportation industry. This acquisition is another investment to help enable improved Know-Your-Carrier (KYC) capabilities that are critical to improve supply chain performance and fraud reduction,” said Dan Cicerchi, General Manager of Transportation Management at Descartes. “We actively connect with hundreds of thousands of carriers and thousands of brokers and shippers. Many of these participants have expressed their desire for us to further extend our investments in fraud prevention. The combination of MCP and our Descartes MacroPoint FraudGuard tool presents a differentiated solution for our customers to efficiently onboard carriers while enhancing visibility and compliance, and reducing fraud risk.”
“We remain committed to adding solutions to our Global Logistics Network that help our customers manage the complete lifecycle of shipments in a secure and efficient manner,” said Edward J. Ryan, Descartes’ CEO. “MCP directly complements our investment in MacroPoint, and we’re excited to welcome the employees, customers and partners into the Descartes family.”
MCP is headquartered in the US. Descartes acquired MCP for up-front consideration of approximately $USD 24 million satisfied with cash on hand, plus potential performance-based consideration. The maximum amount payable under the all-cash performance-based earn-out is $USD 6 million, based on the combined business achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2026 and fiscal 2027.
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 X (Twitter).
Descartes Investor Contact
Laurie McCauley
(519) 746-2969
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 MCP and its solution offerings; the potential to provide customers with carrier onboarding and risk monitoring solutions; other potential benefits derived from the acquisition and MCP’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 MCP 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.
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