Logistics software provider WiseTech Global on Tuesday announced the acquisition of Taric, a customs management solutions provider in Spain.
Madrid-based Taric offers various customs management solutions, including regulatory and tariff services, consultancy, training, process control and documentation management solutions to carriers, customs brokers, logistics providers, multinationals and public institutions.
The purchase cost of Taric comprises AUD $25 million (U.S. $18.4 million) up front, as well as a further multiyear earn-out potential of up to AUD 21.9 million related to business and product integration and revenue performance.
Taric is expected to be consolidated into WiseTech’s accounts in September.
Remaining under the leadership of Guillermo Salafranca and co-founder and technical director Enrique Miret, Taric will continue to deliver its customs software solutions directly to its own customers, along with WiseTech’s flagship platform, CargoWise One.
WiseTech acquired Taric for its leadership in Spanish customs and border compliance technology, and although the acquisition is not connected to recent trade volatility, any changes to trade regulations or border compliance increase the need for technology solutions, a WiseTech spokesperson explained to American Shipper.
“The powerhouse Taric team brings Spanish customs capability and tariff and regulatory expertise across Europe where its customs classification services have been widely used,” WiseTech founder and CEO Richard White said in a press release. “Together, we will expand our footprint in Spain and Europe and our future development in Spanish-speaking Latin America to deliver high-productivity customs management solutions that improve our customers’ operations in key trade flows.
“This acquisition brings strategic value to the WiseTech group as the Taric team can also accelerate the European development of our global BorderWise solution and extend customs and compliance capabilities for our recent acquisitions of leading freight forwarding solution providers, Forward and Softcargo, who together cover 16 countries in Latin America,” White said.
According to the company spokesperson, “WiseTech Global continues to grow its geographic presence by making customs solutions focused acquisitions in the ‘G20 + 20’ group of countries, which actually totals over 50 countries, that between them, represent over 90 percent of manufactured trade flows.”
Since January 2017, WiseTech has made 23 acquisitions, including 14 geographic foothold acquisitions of smaller, founder-led software companies, the spokesperson said.
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.
WiseTech said in May it expects revenues for fiscal year 2018 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.
The company will announce its fiscal year 2018 results on Aug. 22.