Descartes has recently acquired the inventory and order management platform Sellercloud for an upfront payment of $110 million, with the potential for up to an additional $20 million based on revenue targets. Sellercloud, based in New Jersey, offers omnichannel e-commerce services to a wide range of clients, including merchants, distributors, wholesalers, and manufacturers. Their platform is designed to help users manage products across various sales channels and the fulfillment process, handling over 150 million orders totaling more than $15 billion annually.
Mikel Richardson, Descartes’ general manager of e-commerce, expressed excitement about the acquisition, stating that Sellercloud’s advanced inventory and order management capabilities fulfill a demand from their customers. By combining Sellercloud with Descartes’ existing e-commerce shipping, fulfillment, and warehouse management solutions, they believe they will offer a unique and comprehensive solution for managing domestic and cross-border e-commerce shipments.
Descartes, a Canada-based company listed on NASDAQ as DSGX, funded the acquisition using cash reserves, with $252.7 million in cash as of July 31. This marks Descartes’ fifth acquisition of the year, following previous acquisitions of MyCarrierPortal, BoxTop Technologies, OCR Services, and Aerospace Software Developments. CEO Ed Ryan emphasized that these acquisitions align with customer feedback and enhance their Global Logistics Network.
The potential $20 million earnout based on performance will be distributed over the next two fiscal years. This acquisition further solidifies Descartes’ position as a major player in the e-commerce and logistics industry.
