WiseTech Global is showing no signs of letting up on its acquisition spree, with the Australia-based global logistics software provider announcing Friday the acquisition of Fenix Data Systems, a customs management solutions provider in Canada.
Fenix is the eighth acquisition that WiseTech Global has announced since January.
The purchase cost includes AUD $2.5 million (U.S. $1.9 million) up front, with a further, multiyear earn-out potential of up to AUD $0.8 million related to business and product integration and revenue performance.
Fenix offers various cloud-enabled customs compliance solutions, including customs self-assessment functionality, and claims to be one of only a handful of service providers employing the direct connect dedicated private line with the Canada Border Services Agency.
“Border security, tariffs and cross-border clearances into and out of the U.S. are a critical compliance component,” WiseTech Global Founder and CEO Richard White said. “Fenix brings deep customs and border technical expertise, with a specialized focus on cross-border road and rail movements, into the WiseTech Global group adding further expertise, volume and strength to our U.S.-Canada cross-border solution.”
Fenix’s customers include DHL Express, Farrow, ITN Logistics and Swissport Cargo Services, WiseTech said.
Remaining under the leadership of Randy Snyder, Fenix’s operations will be integrated within the WiseTech Global group, and Fenix will continue to deliver its customs software solutions directly to its own customers, along with CargoWise One.
CargoWise One, which is WiseTech’s flagship product, is a single-platform software solution that executes more than 44 billion data transactions annually.
The Fenix acquisition is part of WiseTech’s strategy of accelerating long-term organic growth through targeted, valuable acquisitions.
Since the start of the year:
• In May, WiseTech announced the acquisition of SaaS Transportation, a Florida-based provider of transportation management solutions for less-than-truckload shipping, and the acquisition of Turkish logistics and customs solutions provider Ulukom;
• In April, WiseTech announced the acquisitions of two Latin American freight-forwarding and logistics solutions providers — PB & Assoc. (Forward) and Softcargo — as well as a French customs solutions provider, EasyLog;
• In March, WiseTech announced the acquisition of LSP Solutions, a provider of customs and warehouse management solutions in the Netherlands;
• And in February, WiseTech announced the acquisition of Intris N.V., a Belgian logistics solutions provider.
Amid rapid expansion, WiseTech is forecasting year-over-year growth in revenues and EBITDA for fiscal year 2018, which runs from July 1, 2017, to June 30, 2018.
The company expects revenues for the fiscal year to range between AUD $210 million and AUD $220 million and its EBITA to range between AUD $71 million and AUD $75 million, up from revenues of AUD $153.8 million and an EBITDA of AUD $53.9 million for fiscal year 2017.