WATERLOO, Ont. — Descartes Systems Group announced Tuesday that it has acquired XPS Technologies, a leading provider of e-commerce shipping solutions.
XPS provides cloud-based, multi-carrier parcel shipping solutions directly to small, medium and large e-commerce shippers. It also provides a white-label shipping platform to logistics services providers. The XPS platform helps customers streamline their e-commerce supply chain and reduce transportation costs by automatically importing orders, comparing carrier rates, printing shipping labels for all major carriers, and tracking through final delivery. The XPS platform is even more powerful with its integrations to leading e-commerce marketplaces, ERP providers and supply chain platforms.
“We remain committed to serving the e-commerce market and we believe that scale matters. Combining with XPS adds ecommerce domain expertise, advanced parcel shipping technology and a community of more than 10,000 customers,” said Andrew Roszko, executive vice president of commercial operations at Descartes. “Many of today’s small and medium e-commerce retailers will be the major enterprises of tomorrow, and our integrated e-commerce shipping and fulfillment solutions are designed to help these businesses through all phases of growth.”
“XPS complements our significant recent investments in the e-commerce fulfillment and shipping space,” said Descartes CEO Edward Ryan. “We welcome the XPS customers, employees and partners to the Descartes community and together look forward to helping the community manage the full lifecycle of domestic and international e-commerce shipments.”
Descartes acquired XPS for upfront consideration of approximately $65 million, satisfied with cash on hand, plus potential performance-based consideration. The maximum amount payable under the all-cash, performance-based earn-out is $75 million, based on XPS achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2024 and fiscal 2025.
XPS is headquartered in Cottonwood Heights, Utah.