Blume Global, the US-based developer of a digital supply chain platform, was acquired by WiseTech Global, the Australia-based leader in logistics software, for US$414m.
WiseTech are the developer of leading logistics execution software CargoWise, allowing companies to optimise their supply chain across borders, ensuring efficiency and compliance across all locations. The acquisition will support with improved integration of rail logistics offerings, one of the six key development areas for CargoWise.
WiseTech’s acquisition represents further reach and capability in North America, the world’s largest domestic logistics region. As well as this, Blume are seeing significant annual revenue growths, with FY24 expected revenues in the range of US$65million to US$70 million, representing annual growth of 45% to 55%.
The deal saw a full exit for 4 shareholders, with Apollo, Bridgepoint, Direct ChassisLink, and EQT all retaining 0% of Blume.
In terms of share price movements, WiseTech’s closing price 5 trading days prior to completion of the deal was AUD$63.58, with the closing price on the day of completion at AUD$66.66, representing an increase of 4.84%. Since the deal, the share price has stabilised at a higher amount than it was pre-deal, reflecting the benefits and strategic alignment of the acquisition.
See what Richard White, Founder and CEO of WiseTech had to say about the deal:
“This is another strategically significant acquisition that follows our acquisition of Envase Technologies last month. It further extends our capability in one of our six key CargoWise development priority areas, integrating rail into our landside logistics offering in North America, the most complex and largest logistics region in the world. Blume also brings significant new talent, a portfolio of other valuable product capabilities, and further enhances our product development skill set. This transaction demonstrates WiseTech’s continued investment in its CargoWise ecosystem, improving visibility and process efficiencies end-to-end across the supply chain for our customers.”
Written by: Jack Clemmey
Sources: Pitchbook, Yahoo Finance, WiseTech Global
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