WiseTech buys Containerchain for $92m
Written on the 26 February 2019 by Matt Ogg
Founder-led logistics software group WiseTech Global (ASX: WTC) is set to expand its international reach after sealing a deal to buy Singapore-based containerisation solutions provider Containerchain for $92 million.
The acquired group covers more than five million import and export container movement notifications each year, and has offices in Australia, New Zealand, Singapore, Malaysia, Germany, the Netherlands, Belgium, France and the US.
The move comes on the back of 25 acquisitions worldwide in FY18 along with the purchase of Norway-based customs management solutions provider Systema AS for $3 million in February.
Shares in the tech stock have fallen 19.4 per cent since its first half results were announced on 20 February, despite net profit having risen 48 per cent to $23.1 million.
The company was also a prominent feature in the recently released Business News Australia Top Listed Companies Sydney 2019.
WiseTech CEO Richard White (pictured) sees great strategic value in the company's container management technology, as well as expertise and connectivity.
"Bringing Containerchain into the WiseTech group now, with our powerful innovation capacity across our 20 development centres worldwide and our significant operational capacity to support commercial engagement for their new entry markets, presents an incredible opportunity for future growth," he says.
"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 execution capabilities for 2PL and 3PL and further facilitating our new platform in development."
WiseTech, which tracks more than 12 million ocean containers annually, is on track to providing additional visibility, notifications and decision-making capability domestically with Containerchain in the fold.
"Increasingly, we are expanding into capabilities that will connect and enable logistics providers and carriers with beneficial cargo owners (BCOs) such as shippers, importers, exporters and other logistics users," says White.
Containerchain will remain under the leadership of managing director Chris Collins and founder Tony Paldano.
"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," says Paldano.
"Containerchain remain committed to our customers internationally, who we know will benefit from our access to WiseTech's significant R&D capabilities and global customer network."
Taking the acquisition into account, WiseTech is forecasting FY19 revenue growth of between 47-53 per cent ($326-339 million) and EBITDA growth of 28-35 per cent ($100-105 million).
At 10:42 AEDT WTC shares were down 1.52 per cent at $18.76.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Matt Ogg