Supply chain software firm Descartes Systems Group (NASDAQ:DSGX) has acquired ShipTrack, a Canadian company that offers a cloud-based logistics platform for final-mile deliveries, for $19 million.
Waterloo, Canada-based Descartes announced the acquisition on Friday and could pay an additional $19 million if ShipTrack meets revenue targets over two years.
ShipTrack offers a scalable platform for managing resources and tracking shipments. Descartes highlighted ShipTrack’s applications for e-commerce home deliveries and parcel and medical courier operations.
The acquisition is a timely one as the COVID-19 pandemic drives higher volumes of e-commerce and medical shipments.
“We believe there is a permanent shift in buying preferences underway that will continue to see an increasing number of goods being bought online,” Descartes CEO Edward Ryan said in a statement. “Descartes continues to invest in our e-commerce capabilities to make sure that our customers, large and small, can fulfil orders and meet delivery commitments efficiently.”
ShipTrack, a Blockchain in Transport Alliance (BiTA) member, is developing a blockchain-based delivery platform utilizing technology from IBM. The platform is currently in beta testing.