Descartes Systems Group, a Canadian logistics network platform provider, has acquired Sellercloud, a provider of omnichannel e-commerce solutions, in a deal valued at approximately $130 million. The acquisition marks Descartes’ 31st since 2016, reinforcing its Global Logistics Network platform. Sellercloud provides merchants with software that enables them to sell products across multiple marketplaces from a unified catalog, controlling inventory and fulfillment from a single platform.
The company’s clients include small and mid-market retailers, distributors, wholesalers, and manufacturers. Descartes paid $110 million upfront for the acquisition, with an additional $20 million contingent on Sellercloud meeting certain revenue targets in the coming quarters.
Descartes acquires omnichannel e-commerce expertise
“Our integrated e-commerce solutions are designed to help product sellers through all phases of their growth, from a single product startup to a global multi-channel enterprise,” said Mikel Richardson, General Manager of e-commerce at Descartes. Richardson added, “This expansion provides our customers with advanced inventory and order management capabilities that they have been asking for. When combined with Descartes’ existing e-commerce shipping, fulfillment, and warehouse management solutions, we believe the result is a truly differentiated offering to manage the full lifecycle of domestic and cross-border e-commerce shipments.”
The acquisition is expected to enhance Descartes’ ability to offer comprehensive e-commerce logistics solutions, encompassing everything from inventory planning to last-mile delivery.
Descartes CEO Ed Ryan noted that Sellercloud’s technology complements their existing investments in e-commerce solutions such as XPS, ShipRush, pixi, and Peoplevox. Descartes funded the transaction with cash on hand, closing its fiscal quarter ended July 31 with $252.7 million in cash. This acquisition marks Descartes’ fifth of the year, following the acquisitions of logistics software provider for $24 million, shipment management services provider BoxTop Technologies for $13 million in June, trade compliance provider OCR Services for $150 million in March, and customs and regulatory compliance company Aerospace Software Developments in April.
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