On Feb. 14, Ontario, Canada-based logistics software provider Descartes Systems Group announced that it has acquired GroundCloud, a Minnesota-headquartered cloud-based provider of final-mile carrier solutions and road safety compliance tools.
“To deliver safely and efficiently on customer expectations in today’s dynamic market conditions, final-mile carriers need a holistic approach to operations, safety and compliance,” said Andrew Roszko, Chief Commercial Officer at Descartes. “This challenge is even more complex for the thousands of subcontracted delivery service providers working as agents for larger carriers. GroundCloud helps ensure seamless operations, end-to-end visibility, and standards of safety and compliance are met, including helping final-mile carriers comply with the various safety mandates of large transportation brands.”
Descartes said it acquired GroundCloud for up-front consideration of approximately $138 million (USD) satisfied with cash on hand, plus potential performance-based consideration.
The maximum amount payable under the all-cash performance-based earn-out is $80 million (USD), based on the combined business achieving revenue-based targets in each of the first two years post-acquisition, Descartes said. Any earn-out is expected to be paid in fiscal 2025 and fiscal 2026.
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