The publicly-traded global logistics software provider used an existing line of credit to fund its acquisition of Aljex Software, a cloud-based, back-office transportation management solutions provider used by nearly 400 customers across North America.
The global logistics software provider Descartes said Friday it has acquired Aljex Software, which makes cloud-based back-office transportation management solutions for freight brokers and transportation companies.
Descartes will pay $32.4 million in cash to Aljex, which is used by nearly 400 customers in North America to plan and execute close to 3 million freight moves per year.
“Aljex solutions help customers automate business processes and create electronic documents critical for executing transportation moves,” Descartes said in a statement. “Customers can manage the lifecycle of a shipment from order creation through execution, including real-time tracking with connectivity to the Descartes MacroPoint network.”
Descartes had acquired MacroPoint for $107 million back in August 2017.
Edward J. Ryan, chief executive officer of Descartes, said his company has worked with Aljex for a number of years to serve the North American freight broker market.
“We now have an opportunity to fully integrate Aljex into (Descartes’) Global Logistics Network (GLN),” Ryan said. “In doing so, we can provide customers with improved access to track shipments and the ability to better utilize increasingly scarce carrier capacity.”
Tom Heine, CEO of Aljex, said his company’s systems are also useful for large fleet operators looking to broker their own excess capacity and improve truck utilization.
“Managing the capacity on trucks profitably while meeting increasingly high customer delivery expectations is a complex task,” he said.
The acquisition is the latest in a long line of such deals Descartes has made over the past decade covering a range of functions. The software provider sees itself as creating a federation of technology applications that its GLN and GLN partners can access. Applications cover everything from domestic truck routing and optimization, to global trade content and retail inventory management solutions. The company has especially deep penetration in the freight forwarding market.
Publicly-traded Descartes said it funded the acquisition from an existing line of credit.