Another M&A deal in logistics: Descartes buys NetCHB for $40mn
Nasdaq-listed Descartes, a cloud-based logistics and supply chain management solutions provider, has acquired NetCHB, a leading provider of customs filing solutions in the U.S., for $40 million in cash.
The maximum amount payable under the all-cash performance-based earn-out is $60 million, according to an official statement from Descrates.
Arizona-based NetCHB helps customers streamline and automate customs filing processes and the declaration process for high volumes of e-commerce shipments in the U.S. Its cloud-based platform is used by 700+ customs brokers to connect to the U.S. Customs and Border Protection (CPB) Automated Broker Interface (ABI) to electronically execute fiscal customs declarations and security filings.
"As the digitisation of the logistics and supply chain industry picks up pace, we continue to invest in complementary solutions that add depth and breadth to our Global Logistics Network (GLN)," says Edward J. Ryan, CEO, Descartes. "NetCHB has a team of deep customs domain experts, scalable and robust technology solutions, and a large group of customers that will benefit from additional solutions available on the GLN to help them manage the lifecycle of shipments."
Descartes Q3 revenue was up 24 percent YoY to $108.9 million, and up 4 percent from $104.6 million in the previous quarter (Q2FY22).
Net income nearly doubled (92 percent) YoY to $25.5 million, and was up 10 percent from $23.2 million in Q2FY22.
"Driver shortages, supply constraints, capacity challenges and shipping bottlenecks are just some of the factors impacting today's global supply chains and the wider economy," Descartes CEO Edward J. Ryan had said while announcing the Q3 results on December 1, 2021. "Running efficient supply chains is complicated, and the right technology is key to delivering on customer promises in a secure and efficient manner. Our Global Logistics Network was specifically designed to help solve the inherent multi-party, multi-process challenges faced by supply chain participants. We continue to leverage our experience and financial position to grow our Global Logistics Network for the benefit of our customers."
Descartes had $171.1 million in cash at the end of October 31, 2021. Cash increased $37.4 million in 9MFY22.