Logistics IT solutions provider Descartes Systems said Thursday it has acquired KSD Software Norway AS (KSD), a leading Scandinavia-based provider of electronic customs filing solutions for the European Union, in a $33 million deal.
The EU customs compliance market is characterized by a complex framework of member states, each with different regulations, languages and systems, Descartes stressed.
"EU customs compliance is complex," said Svenn Widerberg, CEO of KSD. "Our focus is to make the process easier for customers so that they can instead focus on their core businesses. Like us, Descartes is focused on delivering results to customers, and this made a combination with Descartes a logical choice for our customers."
KSD brings more than 1,300 customers to Descartes' Global Logistics Network, with the majority of these companies based in Scandinavia. KSD provides its customers with customs declaration, security filing, transportation management and freight forwarding technology solutions.
"With approximately $10 million of annual recurring revenues that are core to our combined businesses, KSD adds scale for Descartes to serve the wider logistics community," said Edward Ryan, chief commercial officer at Descartes. "Our Global Logistics Network customers can enhance their own logistics operations with access to KSD's broad Scandinavian community of logistics participants and EU compliance solutions. Similarly, we're excited to be able to introduce Descartes' shipment management portfolio to help KSD's customers be even more efficient and profitable in their logistics operations."
KSD is headquartered in Oslo, Norway, with offices in Sweden, Denmark and the Netherlands. The all cash purchase price includes Descartes acquiring approximately $2 million in working capital. To complete the acquisition, Descartes said it used approximately $13 million of cash on hand and $20 million from an acquisition line of credit. - Eric Johnson