Descartes Reports Acquisition Price of Approximately $110 Million
Descartes Acquires Sellercloud, Completes 31st Acquisition Since 2016
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Author: Jeff Berman
October 15, 2024
Earlier this week, Descartes Systems Group, headquartered in Waterloo, Ontario, Canada, announced the acquisition of Sellercloud, a provider of omnichannel e-commerce solutions based in Lakewood, New Jersey, USA.
Descartes stated that the acquisition price is approximately $110 million.
According to Descartes, Sellercloud’s customer base includes small and medium-sized retailers, distributors, wholesalers, and manufacturers engaged in multichannel e-commerce operations. Sellercloud’s inventory management solution (IMS) and order management solution (OMS) help customers synchronize, plan, and manage inventory levels across multiple sales channels. Additionally, Sellercloud assists product sellers in “orchestrating the fulfillment process from routing orders to the appropriate warehouse to helping warehouse staff better manage order picking, packing, shipping, and returns.”
Mavi Silveria, Senior Vice President of Global Marketing at Descartes Systems, told Logistics Management (LM) that acquiring Sellercloud expands Descartes’ e-commerce technology suite to include e-commerce transportation, fulfillment, and warehouse management solutions, adding inventory and order management capabilities that its customers have been requesting. She also noted that discussions between the two parties had been ongoing for months before the deal was officially announced.
“By gaining advanced inventory and order management functionalities, Descartes’ clients will be able to leverage a differentiated, integrated e-commerce platform to orchestrate orders, inventory, and warehouse management, as well as fulfillment and transportation of domestic and cross-border goods,” she said. “The expanded services will also support a wide range of sellers—from small and medium-sized market retailers to distributors, wholesalers, and manufacturers—at every stage of business growth, from startup ventures to global multichannel enterprises. For Sellercloud’s clients, the acquisition provides access to Descartes’ transportation solutions, discount programs, warehouse management product lines, as well as its international trade customs compliance solutions, comprehensive freight forwarding services, real-time visibility, and trading partner/EDI connectivity.”
Regarding the biggest competitive advantage this deal brings to Descartes, Silveria pointed out that Descartes can now offer a unique and comprehensive e-commerce technology portfolio encompassing e-commerce transportation, inventory management, order management, and warehouse management technologies, along with customs, global trade, and other supply chain management capabilities.
She mentioned that Descartes has completed 31 acquisitions since 2016.
“The company’s acquisition strategy focuses on complementary technologies, industry consolidation, and closely adjacent industries within the logistics sector,” Silveria said.
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Source: Logistics Management
