Recs

0

Descartes Systems Buys Norway's KSD Software

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Waterloo, Ontario-based Descartes Systems Group (NASDAQ: DSGX  ) has acquired KSD Software Norway AS, a company described as a "leading Scandinavia-based provider of electronic customs filing solutions for the European Union ('EU')."

On Thursday, Descartes -- itself a logistics technology solutions provider -- announced that it has paid $33 million to acquire KSD, a price offset somewhat by the $2 million in working capital that came with KSD. In addition to the cash, KSD brings with it a customer base of more than 1,300, most based in Scandinavia.

Edward Ryan, Chief Commercial Officer at Descartes, noted that KSD has about $10 million in annual recurring revenues. He suggested that the purchase price Descartes is paying approximates 3.1-times annual sales -- a significant discount to the 5.2x sales valuation at Descartes, proper.

Perhaps in response to the apparent good deal Descartes is getting, the company's shares rose 2.8% in Thursday trading, to close at $10.73.


Read/Post Comments (0) | Recommend This Article (0)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2405028, ~/Articles/ArticleHandler.aspx, 8/30/2016 3:44:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 6 hours ago Sponsored by:
DOW 18,502.99 107.59 0.58%
S&P 500 2,180.38 11.34 0.52%
NASD 5,232.33 13.41 0.26%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/29/2016 4:00 PM
DSGX $21.49 Up +0.04 +0.19%
Descartes Systems… CAPS Rating: No stars

Advertisement