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Descartes acquires final-mile automation platform in $138M deal

GroundCloud adds final-mile capabilities, road safety compliance platform

Descartes bolsters final-mile capabilities through latest acquisition. (Photo: Jim Allen/FreightWaves)

Canadian supply chain software-as-a-service provider Descartes said Tuesday it has acquired final-mile automation platform GroundCloud for $138 million.

Minneapolis-based GroundCloud provides cloud-based final-mile logistics solutions. Its platform automates operations and compliance by helping final-mile carriers manage assets and routing, fill orders, meet delivery windows, and provide safety training and monitoring of drivers. The network integrates video telematics, providing event detection with suggested coaching tips to drivers.

“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, Descartes chief commercial officer. “This challenge is even more complex for the thousands of subcontracted delivery service providers working as agents for larger carriers.”

The upfront purchase price excludes up to $80 million in a potential earnout, which is tied to undisclosed revenue targets over the next two years. Descartes ( NASDAQ: DSGX ) used cash on hand to fund the transaction.

“Descartes continues to invest in our final-mile capabilities to make sure that our customers can fulfill orders and meet delivery commitments efficiently with worker and community safety at the forefront,” said Descartes CEO Edward Ryan. “When combined with Descartes, we see a tremendous opportunity to leverage GroundCloud’s safety content and compliance solutions across a wider set of industry verticals in our routing and mobile customer base.”

Descartes acquired shipment management tech provider Supply Vision in January and e-commerce fulfillment solutions platform XPS Technologies in June .

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.