Descartes Systems Buys Norway's KSD Software

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

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, 9/26/2016 1:42:01 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 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

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

9/23/2016 4:00 PM
DSGX $21.31 Down -0.25 -1.16%
Descartes Systems… CAPS Rating: No stars