Canadian logistics software firm Descartes Systems Group has announced the acquisition of inventory and order management platform Sellercloud for US$110 million to meet customer demand for solutions that support the full lifecycle of domestic and cross-border e-commerce shipments.
Based in New Jersey in the US, Sellercloud supports more than 1,000 small and mid-market retailers, distributors, wholesalers, and manufacturers with multi-channel e-commerce operations. The company executes more than 150 million orders valued at over US$15 billion annually.
The firm’s Inventory Management Solutions and Order Management Solutions (IMS/OMS) help customers synchronize, plan and manage inventory levels across multiple sales channels. The company
In addition, Sellercloud helps product sellers orchestrate the fulfilment process from routing orders to the right warehouse to enabling warehouse staff to better manage order picking, packing, shipping, and returns.
These solutions will now be combined with Descartes’ existing e-commerce shipping, fulfilment and warehouse management offerings.
Expanding Descartes’ product suite
“Our integrated e-commerce solutions are designed to help product sellers through all phases of their growth, from a single product startup to a global multi-channel enterprise,” said Mikel Richardson, General Manager of e-commerce at Descartes.
“Sellercloud expands our product suite with advanced inventory and order management capabilities that our customers have been asking for. When combined with Descartes’ existing e-commerce shipping, fulfilment and warehouse management solutions, we believe the result is a truly differentiated offering to manage the full lifecycle of domestic and cross-border ecommerce shipments,” Richardson added.
Meanwhile, Descartes’ CEO Edward J Ryan noted that the acquisition “directly complements” the company’s e-commerce investments in XPS, ShipRush, pixi, and Peoplevox. “We’re excited to welcome the Sellercloud employees, customers and partners into the Descartes family,” he added.
About the acquisition
Descartes acquired Sellercloud for up-front consideration of approximately US$110 million satisfied from cash on hand, plus additional potential performance-based consideration.
The maximum amount payable under the all-cash performance-based earn-out is US$20 million, based on the combined business achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2026 and fiscal 2027.
