Australian logistics software company WiseTech Global has made its third local acquisition in the last year, buying Sydney-based parcel shipping and less than truckload (LTL) software provider SmartFreight for up to A$55 million (€34.2 mio.), the Australian Financial Review (AFR) reported.
The acquisition is the 24th for the company since July 2017, as the business aims to create "mini WiseTechs" across the globe. Earlier this month, WiseTech Global acquired LSI Sigma Software
(DataFreight), a provider of Customs, freight forwarding and warehouse management software.
SmartFreight helps businesses optimise their logistics for parcel or LTL deliveries, providing a marketplace of 650 transport providers in Australia, New Zealand, Ireland, Britain and South Africa, along with data on things such as the best routes, carriers, prices and lowest carbon footprint. It has 3,300 customers around the world, including Mazda, Hyundai, Epson and Pandora Jewellery.
AFR quoted WiseTech chief executive Richard White as saying that the deal was for SmartFreight's technology, rather than geographic expansion, as the company builds up its capability in first and last mile logistics.
Focusing on the first and last mile
"It's a strategic asset designed to increase our footprint in the first and last mile. We're strong in the middle, which is international logistics, and also at the border, but the first and last mile is where you deliver from the warehouse to the customer, or from the warehouse to international," White said.
The deal is likely to accelerate the expansion of WiseTech's e-commerce offering within its flagship CargoWise One product, version two of which is being beta tested by some of its major clients at the moment.
WiseTech is also expecting to integrate SmartFreight with its other products such as parcel shipping transport management solution Pierbridge, which it acquired in June, and Australian transport and logistics software vendor TransLogix, which it bought prior to listing.
Nol van Fenema