Earlier this week, Waterloo, Ontario-based Descartes, a provider of logistics based on-demand, software-as-a-service offerings announced it acquired Lakewood, N.J.-based Sellercloud, a provider of omnichannel e-commerce services.
Descartes said that the acquisition price was roughly $110 million.
Sellercloud’s customer base is comprised of small and mid-market retailers, distributors, wholesalers, and manufacturers with multi-channel ecommerce operations, according to Descartes. It added that Sellercloud’s Inventory Management Solutions and Order Management Solutions (IMS/OMS) help customers synchronize, plan and manage inventory levels across multiple sales channels. And Sellercloud helps product sellers “orchestrate the fulfillment process from routing orders to the right warehouse to enabling warehouse staff to better manage order picking, packing, shipping, and returns.”
Mavi Silveira, SVP Global Marketing at Descartes, told LM that the acquisition of Sellercloud broadens Descartes’ e-commerce technology suite, which includes ecommerce shipping, fulfillment and warehouse management solutions, with new capabilities for inventory management and order management, which Descartes’ customers have been asking for. And she added that the companies were in discussions for a number of months prior to the deal being announced.
“With access to advanced inventory and order management capabilities, Descartes customers will be able to leverage a differentiated, integrated e-commerce platform to orchestrate order, inventory and warehouse management, as well as fulfillment and shipping for both domestic and cross-border shipments,” she said. “The expanded offering will also support a wide range of sellers—from small and mid-market retailers to distributors, wholesalers, and manufacturers—through all phases of growth from entrepreneurial startup to global multi-channel enterprise. For Sellercloud customers, the acquisition provides access to Descartes’ shipping solutions and discounted rate programs and warehouse management product lines, as well as its customs compliance solutions for international trade, comprehensive transportation management for larger shipments, real-time visibility, and trading partner/EDI connectivity.”
As for the biggest competitive advantages of this deal for Descartes, Silveira cited the ability to offer a unique and comprehensive e-commerce technology stack that includes e-commerce shipping, inventory management, order management, and warehouse management technologies in addition to customs, global trade, and other supply chain management capabilities.
Descartes has completed 31 acquisitions since 2016, she noted.
“The company’s acquisition strategy is focused on complementary technologies, industry consolidation and close adjacencies across logistics,” said Silveira.
