Waterloo, Ontario-based Descartes Systems Group 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.
The article Descartes Systems Buys Norway's KSD Software originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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