Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader in uniting logistics-intensive businesses in commerce, acquired Exentra Transport Solutions Limited, a leading UK-based provider of software-as-a-service (SaaS) driver compliance solutions for the European Union (EU).
In the EU, every vehicle over 3.5 tons is required to have a tachograph. A tachograph is a device fitted to a vehicle that automatically records its speed and distance, together with the driver's activity. Exentra's cloud-based compliance management platform, Smartanalysis, helps customers leverage the data from a vehicle's tachograph to comply with EU-wide legislation governing driver compliance, such as the EU working-time directive.
"The EU driver compliance legislation has been in place longer than comparable regulations in North America. In the EU, not only is every vehicle required to have tachograph hardware, but the hardware is standardized and fitted during vehicle production," said Steve Fisher, CEO of Exentra and Director of Compliance at Descartes. "Our experience strengthens Descartes' Routing, Mobile and Telematics suite to address the US regulatory environment, while our combined solutions also have an immediate impact on the quality and safety of route planning for our collective UK customers."
Exentra brings thousands of UK routing-centric customers to Descartes' Logistics Technology Platform, where more than 35,000 trading partners connect and collaborate to improve logistics operations. Descartes' EU customers immediately benefit from an enhanced Routing, Mobile, and Telematics suite that integrates compliance and route planning applications. This integration can help customers have improved and safer delivery route plans and reduce working-time driver violations.
"Guided by our customers, we continue to invest in our Routing, Mobile and Telematics suite of products," said Edward Ryan, Chief Commercial Officer at Descartes. "We're particularly excited about making this incremental strategic investment in the UK market where we have a long history of route planning success with marquee customers such as John Lewis Partnership and Wolseley."
Partner Nick Jones, assistant director Paddy Bamford and senior analyst Emma Rodgers, of Clearwater Corporate Finance, advised Exentra on the deal.
Nick Jones, partner at Clearwater said: "I am delighted to see Exentra become part of the Descartes group. There is an excellent fit in terms of strategy and culture between the two businesses, with clear opportunities for the Exentra platform to be rolled out across Europe and North America as well as for Exentra in the UK to offer the full suite of Descartes products to its existing customers."
Exentra is headquartered in Chippenham, England, and provides its compliance management solutions to some of the UK's leading transportation companies. The all cash purchase price for the acquisition was GBP 10.7 million (approximately USD $17.0 million at November 13, 2012), with Descartes acquiring approximately GBP 0.2 million in working capital (approximately USD $0.3 at November 13, 2012).