Waterloo, Ont.-based multinational and logistics software company Descartes Systems Group has acquired Columbus, Ohio-based 3Gtms, which operates as 3G, a fellow transportation management platform, for $115 million USD ($164.4 million CAD) in cash.
According to Descartes, 3G’s shipping partners, third-party logistics providers, and freight brokers use its platform to optimize domestic shipments by road, using its software tools for planning, rating, consolidation, and routing that cover the entire shipment lifecycle.
In a statement, Descartes chief commercial officer Andrew Roszko said that 3G’s solution brings strong domestic transportation management functionality for different sized delivery modes, like truckload, less-than-truckload (LTL), and parcel.
Descartes acquired two other American companies in the latter half of 2024.
Roszko added that the acquisition expands Descartes’s reach in North America, and adds a network of API-integrated LTL carriers. LTL, as the name implies, refers to smaller-volume shipping that allows for multiple shippers to share space on a single truck.
“Much like Descartes, 3G has been successfully building solutions that connect shippers, carriers and logistics services providers to efficiently digitize and manage the lifecycle of shipments,” Descartes CEO Edward J. Ryan said in a statement. “We look forward to working with 3G’s team of deep domain experts to bring our products together and we’re thrilled to welcome 3G’s partners and customers into the Descartes family.”
Founded in 1981 and listed on the Toronto Stock Exchange since 1998, Descartes offers software solutions for use in logistics and supply chains, including managing and monitoring logistical processes such as delivery resources, invoices, documentation, and shipments. The company’s growth has been fuelled by actively acquiring other freight, transportation, and supply chain management companies.
RELATED: Descartes acquires UK-based logistics platform BoxTop for $18 million CAD
Descartes made a total of four acquisitions in 2024, including two other American companies in MyCarrierPortal and Sellercloud. MyCarrierPortal, acquired in September for approximately $24 million USD ($32 million CAD), provides onboarding and risk monitoring software for freight providers. Sellercloud, acquired in October for $110 million USD ($149 million CAD), provides inventory and order management software for retailers.
While Descartes continues to be a Canadian company scooping up American companies, the trend so far this year seems to have been the opposite. Toronto-based companies like Softchoice, Payfare, Carbon6 Technologies, and Street Context have all been acquired by American companies. American private equity firm Primus Capital also recently acquired a majority stake in Calgary FinTech startup Reach, and Google is reportedly close to acquiring Waterloo, Ont.-based AdHawk Microsystems.
Descartes looked across the pond for its early 2024 deals, acquiring UK shipment management platform provider BoxTop Technologies for 10.25 million pounds (then $18 million CAD) last June and Dublin, Ireland-based customs declaration software Aerospace Software Developments for 54 million euros (then $79 million CAD) last April.
Feature image by Marcin Jozwiak on Unsplash.