A$75.01: another record for WiseTech
The WiseTech (WTC) run is unstoppable. Today WTC hit another record of A$75.01, looking to close ...
Australian supply chain software supplier WiseTech is to acquire Singapore-based container tracking and visibility platform Containerchain, for A$92m (US$65.8m).
Containerchain provides real-time tracking, automation, connectivity, operational planning and container visibility across the supply chain, “covering over 5m import and export container movement notifications annually”.
The company includes empty container depots, road transporters, container terminals, warehouses, shipping lines and cargo owners among its customers, mostly in Australia, New Zealand and Singapore, but it recently expanded operations to Malaysia, Europe and the US.
WiseTech Global founder and chief executive Richard White explained: “Containerchain is a valuable connector technology, digitising and optimising container depot operations and gate slot-bookings, adding adjacent technology to our portfolio of CargoWise One 2PL and 3PL execution capabilities and further facilitating our new platform in development, CargoWise Nexus.
“We see great strategic value in the team’s container management technology and expertise, connectivity across landside communities and significant market penetration in Australia, New Zealand and Singapore.
“Importantly, this acquisition further expands our offering and ability to reach new customer segments,” he said.
WiseTech’s platforms currently track around 12m international container movements a year. Mr White added: “With Containerchain, we will be able to provide additional visibility, notifications and decision-making capability domestically on both ends of the container chain.
“Increasingly, we are expanding into capabilities that will connect and enable logistics providers and carrier with beneficial cargo owners such as shippers, importers, exporters and other logistics users.”
Containerchain MD Chris Collins said: “For some time, the containerised supply chain has been seeking integrated platform connectivity to further improve efficiencies and shipper visibility.
“The combination of Containerchain’s landside container management ecosystem and WiseTech’s global CargoWise One execution platform will allow us to enhance this connectivity and ultimately deliver true door-to-door shipper visibility and optimisation.”
WiseTech is acquiring Containerchain from founder Tony Paldano and funds managed by CHAMP Private Equity in an all-cash deal. It said in a statement to the Australian Stock Exchange it is expected to be incorporated into its accounts by April.
Containerchain has annual revenues of around A$14.4m, and an ebitda level that “is not material” to WiseTech, as it reinvests most of its earnings into platform development.
However, that means also there are strong potential synergies, which WiseTech said would add to its bottom line by full-year 2021.
It will also remain under the joint leadership of Mr Collins and Mr Paldano (pictured above).
Mr Paldano said: “This is a big step forward, with customers getting access to full information management of their shipments, clean and complete data for improved decision-making, and significant productivity improvements for all stakeholders as a result.”
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