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New e2open owner WiseTech rocked by police search tied to founder White

Stock has been plummeting for months, gets a new downward push by latest development

John Kingston
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An undated photo of Richard White (Photo: WiseTech)

WiseTech, the Australian logistics software company that earlier this year closed on the acquisition of U.S.-based e2Open, found itself embroiled this week in a possible insider trading probe of executive chairman and founder Richard Wise.

According to multiple press reports, the Australian Securities & Investments Commission and the Australian Federal Police raided the company’s office in Sydney, searching for various documents related to trading in WiseTech stock White may have engaged in late 2024 and into 2025.

WiseTech stock has been on a steady decline for almost a year. It traded just under Au$140 (U.S. $91.52) a year ago. It is now less than $70, with a decline of more than $15 in just the past few days as news of the investigation unfolded. 

White last year resigned as CEO after issues regarding “inappropriate behavior,” according to media reports. But he then made a return as executive chairman in February. Former WiseTech executive Zubin Appoo was brought in as CEO in July. The e2open acquisition closed in August.

E2open was acquired for $2.1 billion, which equated to $3.30 per share. That was about a 28% premium over the stock price prior to the announced acquisition. 

WiseTech’s core product is execution software CargoWise. But it owns a lineup of other logistics software providers. Its web page lists 20 other companies, and e2open has not yet been added to the list. 

According to media reports, Morningstar has issued its outlook on WiseTech which sees a significant impact to the company if White is forced out yet again. 

Morningstar analyst Roy Van Keulen said in a research note, according to report, that his company would reduce its estimated value of WiseTech by 15% to 20% should White depart. “Both the rate of growth and the ultimate progression of the business would shrink,” he said, according to the media reports, which added that Morningstar considered the chance of White’s ouster as a result of the stock trading probe to be small.

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John Kingston

John has an almost 40-year career covering commodities, most of the time at S&P Global Platts. He created the Dated Brent benchmark, now the world’s most important crude oil marker. He was Director of Oil, Director of News, the editor in chief of Platts Oilgram News and the “talking head” for Platts on numerous media outlets, including CNBC, Fox Business and Canada’s BNN. He covered metals before joining Platts and then spent a year running Platts’ metals business as well. He was awarded the International Association of Energy Economics Award for Excellence in Written Journalism in 2015. In 2010, he won two Corporate Achievement Awards from McGraw-Hill, an extremely rare accomplishment, one for steering coverage of the BP Deepwater Horizon disaster and the other for the launch of a public affairs television show, Platts Energy Week.