WiseTech to Acquire Transport Software Provider Envase for $230 Million

By Stuart Condie

SYDNEY--Australia's WiseTech Global Ltd. agreed to acquire U.S.-based transport-management software provider Envase Technologies for $230 million in what its chief executive said is a strategically significant move.

The ASX-listed logistics software provider on Wednesday said that it would pay $161 million from existing cash reserves and issue $69 million in new shares, under escrow for 12 months. Envase is owned by a private-investment firm, supply chain investor The Firmament Group, and a small number of other sellers, WiseTech said.

Envase provides transport-management system software for intermodal trucking and landside logistics in North America. Landside logistics is one of the six key development priorities for WiseTech's CargoWise platform, WiseTech Chief Executive Richard White said.

Envase is expected to generate about $35 million in revenue in 2023, with an earnings margin in the low-to-mid 20% range, WiseTech said.

WiseTech expects to complete the transaction in February. It said it would comment further on the acquisition on Feb. 22, when it announces financial results for the six months through December.

Write to Stuart Condie at [e-mail]

(END) Dow Jones Newswires

January 24, 2023 17:06 ET (22:06 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.