WATERLOO, ONT. — Descartes Systems Group is buying U.S. company XPS Technologies in a deal worth up to US$140 million.
XPS provides cloud-based parcel shipping services to small-, medium- and large-sized e-commerce shippers.
It helps customers reduce transportation costs by importing orders, comparing carrier rates, printing shipping labels and tracking packages through final delivery.
Descartes CEO Edward Ryan says XPS complements the company's significant investments in e-commerce fulfilment and shipping.
Under the agreement, Descartes has agreed to an upfront payment of about US$65 million in cash.
The Ontario-based software company has also agreed to pay up to an additional US$75 million in performance-based consideration related to revenue-based targets in each of the first two years post-acquisition.
This report by The Canadian Press was first published June 6, 2022.
Companies in this story: (TSX:DSG)
The Canadian Press