Software Logistics Giant WiseTech Buys E2Open for $2.1B - TT
Summary
Australian shipping software company WiseTech Global Ltd. made its biggest ever acquisition, agreeing to buy E2open Parent Holdings Inc. in a deal that values the U.S. firm at $2.1 billion. The acquisition is the first major move by founder Richard White since he assumed the role of executive chairman in February following months of turmoil after revelations about his private life and relationships with staff and suppliers. The deal is by far WiseTech’s largest expansion — in the past 10 years it has made 55 acquisitions for a total value of $1.2 billion, according to an investor presentation. “This is a pivotal moment in WiseTech’s development,” White said on an investor call May 26, adding that it is a “huge step” toward the company’s goal of being the operating system of choice for global trade and logistics. He pointed out that while the global trade and logistics market is worth more than $11 trillion, software spending is less than 1% of the sector, presenting the opportunity to deliver significant value with even small cost savings.