Canadian logistics technology provider Descartes Systems Group continues to grow through acquisitions, announcing today that it has spent $65 million to acquire a Utah-based company that provides multi-package shipping solutions -carriers for e-commerce.
Ontario-based Descartes has purchased Cottonwood Heights, Utah-based XPS Technologies for a price that could reach $75 million if the small company meets certain revenue targets over the next two years.
XPS sells its software to e-commerce shippers and provides a white label shipping platform to logistics service providers. XPS says its platform helps users streamline their e-commerce supply chains and reduce shipping costs by automatically importing orders, comparing carrier rates, printing shipping labels for all major carriers and tracking final delivery.
“We remain committed to serving the e-commerce market and believe scale matters. The combination with XPS adds e-commerce domain expertise, advanced parcel shipping technology and a community of over 10,000 customers,” said Andrew Roszko, executive vice president of commerce operations at Descartes, in a statement. “Many of today’s small and medium e-commerce retailers will be tomorrow’s large enterprises, and our integrated solutions from e-commerce shipping and fulfillment are designed to help these businesses through all phases of growth.”
Descartes routinely buys a handful of logistics tech startups each year, with recent examples like California-based route-planning software provider Foxtrot Systems Inc. for $4 million in 2022 and route-execution solutions provider Florida GreenMile mobiles for $30 million in 2021.