Expands Global Logistics Network with Connections to over 2 Million Trucking Assets
WATERLOO, Ontario, Aug. 15, 2017 (GLOBE NEWSWIRE) -- Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global
leader in uniting logistics-intensive businesses in commerce, announced that it has acquired MacroPoint, LLC, an electronic
transportation network providing location-based truck tracking and predictive freight capacity data content.
“Consumers expect to see the location and progress of shipments from the point of order to delivery,” said Ken
Wood, EVP of Product Management at Descartes. “With leading e-commerce retailers and other shippers demanding that their
transportation providers provide real-time location-based information, the business-to-business market now has the same expectation
of full visibility into transportation moves. To meet this expectation, MacroPoint has established what we believe is the
preeminent network of connected vehicles and location-based content in North America.”
US-based MacroPoint runs a connected network of over 2 million trucking assets and drivers. MacroPoint connects to
trucks through integrations to on-board electronic logging devices (ELDs), transportation management systems, GPS-enabled smart
phone applications and location-based mobile phone triangulation. MacroPoint uses this data to help transportation brokers,
logistics service providers and shippers track the locations of deliveries in trucks. MacroPoint can also use this content to
provide transportation brokers and shippers with predictive freight capacity to help identify early opportunities for additional
freight moves.
“MacroPoint is the market leader for truckload shipment visibility,” said Bennett Adelson, CEO of MacroPoint. “We
believe that the combination of Descartes’ Global Logistics Network with our cloud-based, real-time load visibility platform
creates a truly differentiated offering that helps customers research, plan, execute and monitor multi-modal shipments around the
world.”
“Descartes has a successful history of electronically connecting transportation providers to transportation
brokers, logistics intermediaries and shippers to share data, automate processes, and run more efficiently,” said Edward J. Ryan,
Descartes’ CEO. “With this experience, we appreciate the unique value of a network-based business focused on the transportation
industry with a track record of high revenue growth, high recurring revenues and profitability. We’re excited to have MacroPoint
join the Global Logistics Network so that we can jointly deliver even more value to the logistics and supply chain community.”
Descartes acquired MacroPoint on a tax-efficient basis for approximately $US 107 million satisfied with
approximately $US 87 million in cash and $US 20 million in shares. The cash consideration was satisfied from $7 million of cash on
hand and the balance from Descartes’ existing acquisition line of credit. The share consideration is subject to a 12 month hold
period, with 50% of the share consideration required to be held for at least 18 months.
“We view Descartes as a natural fit for the MacroPoint network and business,” said Amir Goldman of Susquehanna
Growth Equity, LLC, a MacroPoint shareholder. “We believe there are tremendous opportunities for the combined business, which is
why we’ve become Descartes shareholders as part of this transaction.”
MacroPoint is headquartered in Cleveland, Ohio and connects more than 8,000 transportation providers, brokers and
shippers. At the time of acquisition, MacroPoint had annualized revenues of approximately $US 12.5 million. More information on
MacroPoint can be found at www.macropoint.com.
Second Quarter Fiscal 2018 Financial Results and Conference Call
Descartes is scheduled to report its second quarter fiscal 2018 financial results after market close on Wednesday, September 6,
2017. Members of Descartes' executive management team will host a conference call to discuss the MacroPoint acquisition and
Descartes’ financial results at 5:00 p.m. ET on Wednesday, September 6. Designated numbers are +1 888 465-5079 for North America
and +1 416 216-4169 for international, using Passcode 9965517#. For more details on webcasts and conference call replays, please
visit www.descartes.com/descartes/investor-relations.
About Descartes Systems Group
Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions
focused on improving the productivity, performance and security of logistics-intensive businesses. Customers use our modular,
software-as-a-service solutions to route, schedule, track and measure delivery resources; plan, allocate and execute shipments;
rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports;
and complete numerous other logistics processes by participating in the world's largest, collaborative multimodal logistics
community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at
www.descartes.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking information within the meaning of applicable securities laws
("forward-looking statements") that relate to Descartes' acquisition of MacroPoint, respective solution offerings and potential
benefits derived from the acquisition and the respective solution offerings; and other matters. Such forward-looking statements
involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or
achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by
such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section
entitled, "Certain Factors That May Affect Future Results" in documents filed with the Securities and Exchange Commission, the
Ontario Securities Commission and other securities commissions across Canada including Descartes most recently filed management's
discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition
or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are
cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made.
Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans
relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake
or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect
any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as
required by law.
Global Media Contact Mavi Silveira Tel: +1(800) 419-8495 ext. 202416 msilveira@descartes.com
