Descartes buys Velocity Mail for $25.5 million

Electronic network connects air cargo carriers with postal providers.    Logistics and supply chain software provider Descartes Systems Group has acquired “certain assets” of Velocity Mail, the company said in a statement.
   Denver-based Velocity Mail operates an electronic transportation network that connects air cargo carriers with postal authorities, providing airlines with mail and parcel shipment scanning and tracking solutions.
   In addition to providing real-time tracking and visibility, Velocity Mail “automates the entire shipment process from route generation to accounting reconciliation, simplifying operational processes for the air carriers, ground handlers and postal authorities,” Descartes said.
   Ken Wood, executive vice president of product management at Descartes, said booming e-commerce volumes, more than 60 percent of which are handled by postal providers, have boosted demand for Velocity Mail’s services.
   “Global air carriers need to have access to timely and reliable information about the movement of mail and parcel shipments to operate efficiently and meet postal authority service level agreements,” said Wood. “Velocity Mail’s network operates with similar fundamentals to the Descartes Global Logistics Network (GLN). It helps parties connect and share information, while value-added business applications that are part of the network leverage that information to increase efficiencies and improve decision-making.”
   Descartes CEO Edward J. Ryan said the acquisition strengthens the company’s position in the fast-growing global e-commerce market.
   “Global air carriers and their partners are key constituents on our Global Logistics Network,” he said. “By combining Velocity Mail’s solutions with the Descartes Global Air Messaging Gateway, the air carriers will now have one platform to manage the lifecycle of all shipments, both e-commerce focused mail and parcel shipments and larger freight shipments.”