What a day !!!
Here is the announcement
Thursday February 24, 1:01 pm Eastern Time
Company Press Release
Descartes Extends Its B2B Product Offering With
Acquisition Of E-Transport
WATERLOO, Ontario--(BUSINESS WIRE)--Feb. 24, 2000--(TSE:DSG - news;
NASDAQ:DSGX - news)
Acquisition of Global Leader in MultiModal Transportation
Exchange Software Creates Dominant Force in
End-to-End B2B Logistics
The Descartes Systems Group, Inc. (NASDAQ:DSGX - news; TSE:DSG - news), today announced that it has signed
a definitive agreement to acquire privately-held E-Transport, Incorporated, of Pittsburgh, PA., a leading provider of
hosted software and logistics exchange solutions for the multimodal transportation market.
The acquisition will enhance Descartes' leadership position in e-fulfillment by providing new hosted transportation
software and exchange solutions that encompass the critical areas of business-to-business (B2B) e-commerce logistics.
The acquisition will further expand the reach of Descartes' Global Logistics Network, creating what the company
believes is the largest Internet logistics network in the world and providing Descartes' customers with automatic access
to an Internet trading community. Upon completion of this acquisition, Descartes will be uniquely positioned to
accelerate the adoption of B2B e-commerce logistics, create market efficiencies and enable global economies of scale
between thousands of shippers, receivers, carriers, freight forwarders, third-party logistics providers, e-marketplaces,
vertical portals and transportation exchanges.
Descartes will issue stock worth approximately US $80,000,000 to the shareholders of E-Transport based on
Descartes' closing stock price in the period leading up to the execution of the definitive agreement. The acquisition is
expected to close in the first quarter of 2000 and will be accounted for as a purchase. Salomon Smith Barney has
served as financial advisors to Descartes in connection with this transaction.
Leading the B2B E-Commerce Logistics Revolution
The combination of Descartes' DeliveryNet e-fulfillment connectivity, visibility and real-time optimization software
solutions with E-Transport's B2B e-commerce exchange capabilities will create a comprehensive transportation solution
for companies needing to manage high-velocity fulfillment networks.
``We are very excited about the E-Transport B2B logistics exchange capabilities and the strong web of relationships
with the majority of the suppliers in the multimodal transportation industry,' said Peter Schwartz, chairman and CEO of
Descartes. ``With E-Transport and our growing logistics network, Descartes will be clearly positioned to lead the
e-business logistics revolution and accelerate the mainstream adoption of B2B e-fulfillment solutions.'
``E-Transport is focused on changing the way the international logistics community fulfills its customer commitments by
providing software services that enable paperless transactions in all modes of transportation,' said Robert M. Ryan,
CEO of E-Transport. ``To provide the end-to-end logistics solution to our current and future customers, it was clear
that we needed to join with a company that offers e-fulfillment leadership, leading-edge web-based technologies,
real-time logistics optimization expertise and a growing, robust network of multimodal logistics members. The vision,
solution and business model fits between E-Transport and Descartes will create a powerful industry force in B2B
e-fulfillment.'
``This acquisition is a landmark event for the e-fulfillment marketplace, as it creates a truly global, multimodal
e-fulfillment software solutions provider,' said Gilles Serpry, Director of Cap Gemini's global Supply Networks Center
of Excellence. ``The combined forces of Descartes and E-Transport will give shippers, carriers, logistics service
providers and new market aggregators access to world-class transaction, optimization and visibility technology to
radically improve fulfillment operations in today's high-speed Internet economy. This announcement clearly confirms to
Cap Gemini the role that Descartes is positioned to play as an e-fulfillment strategic partner.'
Descartes will Expand Its Market Share Leadership for B2B Logistics Solutions
Through its acquisition of E-Transport, Descartes will hasten the execution of its strategy to bring logistics exchange
capability and hosted e-fulfillment software solutions to the global logistics marketplace. Through Descartes' and
E-Transport's hosted software services, Descartes will be able to provide transaction-based value along multiple points
in the global supply chain, creating revenues for Descartes that will scale with B2B transactions. These Web-based
hosted logistics solutions enable customers to seamlessly manage the entire logistics process in real-time and optimize
transportation activities across complex fulfillment networks. Exchanges and other Net aggregators will be able to use
these hosted solutions to rapidly create private, semiprivate and public marketplaces.
E-Transport has a blue chip customer base which includes global leaders in transportation such as Maersk Sea-Land,
Hanjin Shipping Company Limited, Hyundai Merchant Marine and P&O Nedloyd. E-Transport's pricing database is
used by over 80% of the largest global ocean carriers and provides hosted software solutions to more than 1,000
shippers, carriers, logistics service providers and other intermediaries.
These hosted offerings include:
* Logistics contracts exchange. Automates the complex negotiation
and price management of international transportation, a
situation that has escalated because of the 1999 U.S. Ocean
Shipping Reform Act. Allows cross-enterprise collaboration in
creation of transportation service contracts.
* Industry-standard, vendor-neutral rate clearinghouse. Used by
shippers, carriers and aggregators to rapidly calculate total
bottom-line ocean freight costs. For example, 16 of the top 20 ocean
carriers in the world use E-Transport's hosted rate management
software solution to offer rating services on their websites to
their customers.
* Real-time activity monitoring and notification with performance
reporting. Provides visibility throughout the transportation supply
chain. Enables real-time problem identification and better tracking
and management of fulfillment operations.
* Cross-enterprise workflow tools for international freight
documentation and processes. Seamlessly integrates shipment
information across enterprises and complements existing enterprise
computing systems. Reduces shippers' logistics transaction
processing costs by up to $100 per transaction.
E-Transport's offerings, extensive expertise, and position in the industrial transportation market will greatly benefit the
combined organization. Through this acquisition, Descartes will aggressively build on these talents and seek to expand
market share.
Creation of the World's Largest Global Logistics Network
The Descartes Global Logistics Network, where shippers and carriers share a common collaborative logistics
infrastructure, will be enhanced by E-Transport's global freight network. The Descartes Global Logistics Network
provides shippers, carriers, logistics service providers, e-marketplaces, vertical portals and transportation exchanges
with an open, scalable, single point of connection to one another via the public Internet, virtual private networks and
wide area networks. Once connected, a participant can conduct paperless business transactions with all other network
members without having to master and manage individual data translations and integration points.
The Descartes Global Logistics Network is designed to create network effects and global economies of scale for all
participants. It provides a common platform for Descartes and its logistics service provider, portal and exchange
partners to deliver a choice of B2B e-fulfillment and exchange services. These services include real-time visibility of
orders, dynamic route optimization, real-time transportation sourcing, merge in transit, rating, contract management and
delivery personalization and yield management. The Descartes Global Logistics Network serves a global transportation
market with transportation expenditure across all modes in excess of US$1 trillion.
About Descartes
Descartes is a leading provider of end-to-end logistics solutions that facilitate B2B e-commerce. Descartes' e-fulfillment
software and exchange solutions enable companies to create high-speed, high-performance fulfillment networks - aka
DeliveryNets(. DeliveryNet solutions empower organizations to deliver reliable, responsive customer service in a
profitable manner and to create innovative new products and services. DeliveryNet solutions leverage Descartes'
Internet-based Global Logistics Network to integrate the internal and external logistics and fulfillment processes of
shippers, receivers, carriers, logistics service providers, e-marketplaces, vertical portals and transportation exchanges.
The result is a global e-fulfillment information infrastructure that provides cost saving and revenue opportunities for
businesses that need to manage physical product movement. Descartes products are used today by more than 850
companies in 35 vertical industries and 50 countries worldwide. For more information about Descartes, visit
www.descartes.com
About E-Transport
E-Transport, Incorporated is a global leader in developing B2B e-commerce software solutions for the multimodal
transportation industry. E-Transport's software solutions include transportation exchange solutions and Web-based
applications for negotiating contracts and checking rates. E-Transport has relationships with the majority of the world's
largest cargo carriers and suppliers. Currently, E-Transport's pricing database is used by over 80% of global ocean
cargo carriers. E-Transport has offices in Cranford, New Jersey, and Miami, San Francisco, Shanghai, and London.
The company is headquartered in Pittsburgh, Pennsylvania. For more information about E-Transport, visit
www.etransport.com
All registered and unregistered trademarks mentioned in this release are the property of their respective owners.
This release contains statements relating to acquisitions, market and customer dynamics, future operating strategy,
revenue growth, and other matters that constitute forward-looking statements that involve risks and uncertainties. The
Company's actual results may differ from the results discussed in the forward-looking statements. Factors that may
cause such a difference include, but are not limited to: risks associated with uncertainty and unanticipated delays in
closing customer orders; uncertainty associated with the shift from enterprise applications to e-business markets;
competition or consolidation within the industry; management of growth; the Company's dependence on certain
industries, markets and clients; the Company's dependence on key personnel, proprietary technology and a limited
number of products; acquisitions; software defects; the ability to enhance current products and to introduce new
products in a timely fashion at competitive prices; third party claims of infringement; reliance on third party licenses;
limited profitability; lengthy sales and implementation cycles and increasing size of orders; and the potential volatility of
share prices; potential fluctuations in quarterly results; the need to enhance management systems; currency risk; and
international sales; and other factors discussed in the section entitled, ``Risk Factors' in documents filed with the
Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across
Canada. |
