Descartes Systems Group has announced that it has acquired MacroPoint, an electronic transportation network providing location-based truck tracking and predictive freight capacity data content.
US-based MacroPoint runs a connected network of over 2 million trucking assets and drivers. MacroPoint connects to trucks through integrations to on-board electronic logging devices (ELDs), transportation management systems, GPS-enabled smart phone applications and location-based mobile phone triangulation. MacroPoint uses this data to help transportation brokers, logistics service providers and shippers track the locations of deliveries in trucks. MacroPoint can also use this content to provide transportation brokers and shippers with predictive freight capacity to help identify early opportunities for additional freight moves.
“Descartes has a successful history of electronically connecting transportation providers to transportation brokers, logistics intermediaries and shippers to share data, automate processes, and run more efficiently,” said Edward J. Ryan, Descartes’ CEO.
“MacroPoint is the market leader for truckload shipment visibility,” said Bennett Adelson, CEO of MacroPoint. “We believe that the combination of Descartes’ Global Logistics Network with our cloud-based, real-time load visibility platform creates a truly differentiated offering that helps customers research, plan, execute and monitor multi-modal shipments around the world.”
Descartes acquired MacroPoint on a tax-efficient basis for approximately $107 million satisfied with approximately $87 million in cash and $20 million in shares. The cash consideration was satisfied from $7 million of cash on hand and the balance from Descartes’ existing acquisition line of credit. The share consideration is subject to a 12 month hold period, with 50% of the share consideration required to be held for at least 18 months.
MacroPoint is headquartered in Cleveland, Ohio and connects more than 8,000 transportation providers, brokers and shippers. At the time of acquisition, MacroPoint had annualised revenues of approximately $12.5 million.