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Descartes continues customer-driven acquisition strategy with GreenMile purchase

GreenMile improves supply chain and in-house operations for food and beverage verticals

Descartes acquires GreenMile for food and beverage solutions. (Photo: Tricky_Shark/Shutterstock)

In the supply chain software provider’s earnings call in June, Descartes Systems Group’s CEO explained the company’s recent spree of acquisitions in order to fulfill customers’ growing business needs.

“We listen to our customers about where to invest for the future, and as a result, our acquisition strategy is very much customer-driven,” said Edward J Ryan. 

“Last year, we bought three businesses and this year we’ve already bought two. We believe there continues to be a number of good quality, profitable businesses that make sense to be a part of the global logistics network, and that will be a big benefit to our customers. We believe combining with good businesses makes us a better company, and it will remain a large part of our plans going forward.”

Related Article: Descartes acquires Portrix to improve logistics providers’ digital customer experience

On Tuesday, Descartes (NASDAQ:DSGX) announced it has added another strategic acquisition to the list with its purchase of GreenMile, a cloud-based mobile routing solution with a deep customer base in food and beverage including Coca-Cola (NYSE:KO), Pepsico Inc. (NASDAQ:PEP) and Heineken.

Descartes purchased the Orlando, Florida-based routing solution for up-front cash consideration of $30 million with a potential performance-based all-cash earn out of $10 million if GreenMile achieves undisclosed revenue-based targets over the first two years post-acquisition. 

“GreenMile has built a great business by focusing on the unique challenges faced by retail food and beverage distribution companies,” said Andrew Roszko, executive vice president of commercial operations at Descartes, in the release. “Their mobile applications are used by drivers around the world to improve their productivity and provide real-time delivery visibility to enhance customer service.”

Acquisition details: Descartes Systems Group

Acquisition price$30 million up-front cash consideration with potential $10 million performance-based all-cash earn out
Acquirer revenue run rate$363.8 million
Recent acquisitions by acquirerPortrix (May 2021) and QuestaWeb (March 2021)
Based on data provided by Pitchbook

These applications cover a vast array of productivity tools to help improve a company’s supply chain operations and in-house productivity with solutions for driver visibility, merchandiser routing, and even tracking and reporting for line cleaners and technicians.

“The platform is complemented with advanced analytics and delivery performance management tools to provide managers in the field and corporate leadership with a comprehensive view of field operations,” said Roszko. “When combined with Descartes’ advanced route optimization tools, we believe it presents a compelling proposition to help distributors improve their final-mile delivery operations.”

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Grace Sharkey

Grace Sharkey is a professional in the logistics and transportation industry with experience in journalism, digital content creation and decision-making roles in the third-party logistics space. Prior to joining FreightWaves, Grace led a startup brokerage to more than $80 million in revenue, holding roles of increasing responsibility, including director of sales, vice president of business development and chief strategy officer. She is currently a staff writer, podcast producer and SiriusXM radio host for FreightWaves, a leading provider of news, data and analytics for the logistics industry. She holds a bachelor’s degree in international relations from Michigan State University. You can contact her at [email protected].