Yahoo Finance Descartes (DSGX) Acquires Aerospace Software Developments
Descartes Systems DSGX recently announced the acquisition of Aerospace Software Developments (“ASD”). DSGX paid approximately €57 million ($61 million) to acquire ASD, a deal settled with €54 million paid upfront from DSGX’s cash reserves. The acquisition is projected to be completed in DSGX’s fourth-quarter fiscal 2025.
Based in Dublin, Ireland, ASD is a software company that builds mission-critical applications based on modern RFID technology, specifically engineered for the Aerospace and Aviation market sector. The cutting-edge technology aids the air logistics community in tracking assets by excluding manual tasks and adhering to multiple airline regulations more seamlessly via asset tagging and tracking.
ASD designs premium customs declaration software solutions for logistics services providers (LSPs) and shippers. It offers its customs filing solutions under the brand, Thyme-IT, which aids importers, exporters and LSPs to meet Irish regulatory standards for imports and exports efficiently and securely.
Further, DSGX highlighted that the integration of its Global Logistics Network (“GLN”) with ASD’s rich Irish customs domain expertise and modern multi-country customs technology platform is likely to prove complementary to its existing product footprint.
GLN solution was designed to aid shippers, carriers and LSPs in managing the entire lifecycle of shipments.
Also, the company expects the airline community to gain from the integration of ASD’s RFID-based solutions with Descartes’ CORE BLE real-time tracking platform.
Strategic acquisitions have played a pivotal role in top-line expansion for the company. In March 2024, the company acquired OCR Services, Inc., specializing in global trade compliance solutions and content. OCR’s controlled export data is instrumental in broadening DSGX’s vast global trade content library for customers and partners, including SAP and Oracle.
Some other notable acquisitions in the recent past are Localz (2023), GroundCloud (2023) and Supply Vision (2023).
Headquartered in Waterloo, Canada, DSGX provides on-demand, software-as-a-service logistics solutions across the globe. Continued momentum in real-time visibility, Global Trade Intelligence and routing and scheduling solutions are driving its top-line growth.
For fiscal 2024, DSGX reported revenues of $572.9 million, up 18% from fiscal 2023.
At present, DSGX carries a Zacks Rank #2 (Buy). Shares of the company have gained 15% compared with the sub-industry’s growth of 36.2%.
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