Market Overview

Ohio-Based Depot Systems Bought By WiseTech Global

Ohio-Based Depot Systems Bought By WiseTech Global

Ohio-based container yard/terminal management software system Depot Systems has been bought by Sydney, Australia-based WiseTech Global (ASX: WTC) for an undisclosed sum, it was announced today.

Commenting on the reasons for the acquisition, the CEO and founder of WiseTech Global, Richard White, said: "Depot Systems is highly regarded as the U.S. leader in container yard management software with innovative products and significant container yard experience. Empty container yards are a vital but often overlooked part of the international supply chain and landside logistics, thus Depot Systems is a valuable addition to build further opportunities for our technology solutions.

"Bringing Depot Systems into the group provides important synergies with our container optimisation solutions business Containerchain, which we acquired in April this year and brings large scale in container yard customers in the US. Together, this gives us better coverage and visibility into the container yard sector to solve the broader landside logistics issues."

Founded in 1998, Depot Systems provides container yard/terminal management software in the U.S. Among other services, Depot Systems helps with container yard management, container maintenance and repair estimating. It helps manage container bookings, releases and manifests, container lifting and mounting, gate EDI, as well as repair and equipment status. 

It has more than 200 predominantly US‐based depots and terminals as customers, including Container Maintenance Corp, Trac Intermodal, ContainerPort Group and XPO Logistics. It averages over 500,000 gate movements per month.

Wally Morris, the managing director of Depot Systems (pictured above), will continue to lead the business. Depot Systems will continue to provide its services to US customers, and "potentially" to businesses around the world that use WiseTech's "CargoWise" supply-chain software.

WiseTech Global was founded in October 1994 to develop, sell and implement software that helps logisticians to move and store goods around the world. Its software is used in freight forwarding, customs clearance, warehousing, liner and agency, truck and rail management, all the main modes (air, sea, road, rail) of freight, container pack and unpack and in other areas. WiseTech's customers include 12,000 of the world's logistics companies across 130 countries.

The company floated on the Australian Stock Exchange in April 2016 at A$3.35 a share. At the time of writing, the company's share price was A$26.72 (US$18.14).

In the 2018 annual report, WiseTech said that it handled more than 54 billion data transactions a year. In the five financial years of 2014 to 2018, the company recorded a 41 percent compound annual growth rate. In the last financial year, WiseTech reported A$221.6 million (US$150.44 million) of revenues; earnings before interest taxation depreciation and amortization of A$78.0 million (US$52.95 million) and net profits after tax A$40.8 million (US$27.70 million). WiseTech is due to release its next full year financial results in a few days. 

Further details of the Depot Systems acquisition have been sought by FreightWaves.

Image Sourced from Pixabay

Posted-In: Freight Freightwaves truckingNews Markets General


Related Articles

View Comments and Join the Discussion!

Target Bites At Walmart's Grocery Share With New Private Label Brand

PG&E Shares Tank After New Bankruptcy Rulings