- THE MAGAZINE
Descartes Systems Group has signed a definitive agreement to acquire substantially all of the assets of Integrated Export Systems, Ltd. and IES Asia Limited (collectively referred to as “IES”) for approximately $35 million in cash.
IES provides software-as-a-service solutions (SAAS) for freight forwarders, non-vessel operating common carriers (NVOCCs), and customs brokers.
With offices in New Jersey and Hong Kong, IES delivers its solutions to more than 600 customers with users in over 70 countries worldwide. The company is also a leader in regulatory compliance solutions, where its collaborative security filing solutions connect thousands of logistics service providers who are processing shipments that primarily originate from the Asia Pacific region, Descrates officials commented.
“IES is a market leader in forwarding and customs brokerage systems, and regulatory compliance services,” said Edward Ryan, chief commercial officer at Descartes. “By combining the IES solutions with our Logistics Technology Platform, we strengthen our application footprint for forwarders, NVOCCs and customs brokers. We will also add thousands of logistics service providers in Asia to our global logistics community with the potential to drive new transactions over our Global Logistics Network.”
“We’ve been working with the IES team as part of our United by Design partner program for more than 6 years,” said Art Mesher, chairman and CEO at Descartes. “IES has a results-based culture, recurring revenue subscription model and profit discipline that is similar to our own. We’re very much looking forward to welcoming them to the Descartes team.”
The transaction is expected to close during Descartes’ fiscal second quarter ending July 31, 2012. The transaction is subject to customary closing conditions.