Descartes Systems Buys Norway's KSD Software
May 2nd 2013 6:15PM
Updated May 2nd 2013 7:30PM
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.
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