Descartes acquires Sellercloud

Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), a market leader in supply chain and logistics software solutions, announced that it has announced the Sellercloud acquired, a leading provider of omnichannel e-commerce solutions.

US-based Sellercloud supports small and medium-sized retailers, distributors, wholesalers and manufacturers with multichannel e-commerce operations. Sellercloud's Inventory Management and Order Management (IMS/OMS) solutions help customers synchronize, plan and manage inventory levels across multiple sales channels. In addition, Sellercloud supports product sellers in coordinating their fulfillment process: from routing orders to the appropriate warehouse to more efficiently managing warehouse staff's order picking, packing, shipping and handling of returns.

"Our integrated ecommerce solutions are designed to help product sellers at every stage of their growth, from a single-product startup to a global multichannel organization," said Mikel Richardson, general manager of ecommerce at Descartes. "Sellercloud expands our product portfolio with advanced inventory and order management capabilities that our customers have requested. By combining this with Descartes' existing ecommerce shipping, fulfillment and warehouse management solutions, we believe the result is a truly distinctive offering for managing the full lifecycle of domestic and international ecommerce shipments."

"We continue to listen to our customers to hear what are key investment areas in our Global Logistics Network," said Edward J. Ryan, CEO of Descartes. "Sellercloud directly complements our investments in XPS, ShipRush, pixi and Peoplevox and we are excited to welcome Sellercloud's employees, customers and partners to the Descartes family."

Sellercloud is headquartered in New Jersey. Descartes acquired Sellercloud for approximately $110 million, with cash available, plus a potential performance-based earn-out. The maximum amount that can be paid in cash under the performance-based earn-out is $20 million, based on achieving the combined company's revenue targets in each of the first two years following the acquisition. An earn-out is expected to be paid in fiscal 2026 and fiscal 2027.