Descartes Acquired QuestaWeb For $36M

Descartes Systems Group Inc (NASDAQ: DSGX) announced the acquisition of foreign trade zone (FTZ) and customs compliance solutions provider QuestaWeb for $36 million in an all-cash deal.

• QuestaWeb offers cloud-based customs and regulatory compliance solutions. It enables the logistics services providers (LSPs) and importers to automate processes and fulfill U.S. Customs and Border Protection (CBP) regulatory requirements for operating a foreign trade zone in the U.S. 
• The FTZ solution can be operated as a standalone module or part of the company's wider platform that assists importers and LSPs in managing shipments.
• "The addition of QuestaWeb's FTZ solution brings an important capability to our Global Logistics Network and will help our customers manage the entire foreign trade zone process, allowing them to minimize duties, fees, and taxes while remaining compliant with CBP regulations," said Descartes EVP Ken Wood. 
• The company will integrate QuestaWeb's solutions with forwarder and customs broker back-office platforms, helping LSPs accelerate digital transformation with innovative capabilities such as the Descartes Kontainers online booking tool.
• The transaction was funded by Descartes Systems cash on hand balance of $114.4 million as of October 31, 2020.
• Price action: DSGX stock closed higher by 0.76% at $58.56 on Friday.