Descartes Systems Group (NASDAQ: DSGX) has announced the acquisition of 3GTMS, a leading provider of cloud-based transport management solutions. The approximately $115 million deal marks a significant expansion of Descartes’ capabilities in the North American logistics market.
Based in Waterloo, Ontario, Descartes is a leading player in logistics and supply chain technology, offering a suite of solutions to help businesses optimize and digitize their operations. This latest deal is based on a growth strategy through the acquisition of Descartes to purchase companies such as MacroPoint, Peoplevox and Kontainers in recent years to expand their product suite.
Headquartered in Columbus, Ohio, 3GTMS has built TMS, known for its ability to optimize domestic and international transportation through advanced planning, evaluation, integration and routing tools. This feature is especially valuable for shippers, 3PLS, and cargo brokers looking to streamline operations and reduce costs. 3GTMS is a cloud-based end-to-end solution tailored to shippers, brokers and 3PLs, highlighting flexibility, scalability and user-friendly. One important aspect is a single platform architecture that manages the entire lifecycle of transportation, from planning and optimization to execution and settlement, within one system. Reduce the need for multiple disjointed tools.
Andrew Roszko, Chief Commercial Officer of Descartes, highlighted the complementary nature of 3GTMS’s solution to Descartes’ existing portfolio. “The 3G solution footprint for cargo in North America is very complementary and brings strong domestic transport management capabilities to truck loading, less truck loading than trucks (LTL), and parcel modes,” Roszko said. He also noted that the acquisition has expanded the carrier network of Descartes in North America, including the addition of a network of APi integrated LTL carriers.
The integration of 3GTMS into the Cartesian ecosystem is expected to produce important synergies. Combined with Descartes’ existing transportation management tools and its global logistics network, the acquisition serves Descartes, providing more value to its combination of customer base. This enhanced product can prove particularly attractive to businesses seeking more integrated and efficient solutions, addressing the complexities of modern supply chain management.
“Like Descartes, 3G has successfully built a solution that connects shippers, carriers and logistics service providers, effectively digitizing and managing the shipping lifecycle.”
This acquisition comes at a time when demand for advanced transport management solutions is surged. The pandemic highlights the critical importance of a resilient and flexible supply chain, with many companies investing in technology to enhance logistics capabilities. By folding 3GTMS, Descartes is suited to take advantage of this trend and provide a more comprehensive solution for clients.
The transaction was facilitated by several advisory companies. Gibson, Dan & Crutcher LLP served as attorneys and Lincoln International LLC as financial advisors for 3GTMS, with Morgan, Lewis and Bocchius LLP serving as legal counsel and Centreview Partners LLC as financial advisors for Descartes.
