WATERLOO, Ontario — March 6, 2007 — Descartes Systems Group, a global on-demand software-as-a-service (SaaS) logistics solutions provider, announced that it has acquired the assets of privately-held Long Beach, California based companies Ocean Tariff Bureau, Inc. and Blue Pacific Services, Inc. in an all cash transaction.
Ocean Tariff Bureau has been a reseller of Descartes' Ocean Compliance service for the past 15 years. The jointly-provided Ocean Compliance service helps non-vessel operating common carriers (NVOCCs) comply with U.S. Federal Maritime Commission (FMC) regulations that require NVOCCs to file and make publicly available in the form of a "tariff" their rates for transporting cargo into or out of U.S. waters. In addition, Ocean Tariff Bureau helps both domestic and international NVOCCs, many of whom are headquartered in the Asia Pacific region, with the FMC licensing requirements for becoming an authorized ocean transportation intermediary in the U.S.
Blue Pacific helps NVOCCs acquire the financial bonds and sureties required by the FMC to participate in ocean and other modes of shipment into and out of the U.S. In addition, Blue Pacific helps NVOCCs, freight forwarders and carriers secure the financial sureties required by U.S. Customs & Border Protection (CBP) before the NVOCC can begin sending electronic manifest information to CBP's mandatory automated manifest system for ocean shipments.
Ocean Tariff Bureau and Blue Pacific are led by Captain Alex Yang and Chuck Yang, each of whom will be joining Descartes to continue to serve NVOCC customers. "We have enjoyed a long and successful relationship with Descartes that has enabled us to deliver top quality service to our customers," said Captain Alex Yang. "Our combination with Descartes is a natural fit as we can ensure this continued service level, introduce Descartes products to our existing customer base all while offering our compliance services to the other transportation modes and intermediaries that Descartes serves."
"The acquisition of Ocean Tariff Bureau and Blue Pacific Services continues to extend our service offerings to our customers," said Arthur Mesher, CEO of Descartes. " Our focus is to bring together manufacturers, distributors, retailers, transportation carriers and logistics third parties in a shared services environment using standardized business processes and this acquisition is an added channel to do this."
Descartes paid US $1.0 million at closing for the assets, with up to an additional US $0.85 million payable over the next 2.5 years dependent on the financial performance of the acquired assets. The assets acquired include accounts receivable, customer contracts, technology, intangibles and goodwill.
About Descartes
Descartes (TSX: DSG) (NASDAQ: DSGX), a leading provider of software-as-a-service (SaaS) logistics solutions, is delivering results across the globe today for organizations that operate logistics-intensive businesses. Descartes' logistics management solutions combine a multi-modal network, the Descartes Global Logistics Network, with component-based 'nano' sized applications to provide messaging services between logistics trading partners, "book-to-bill" services for contract carriers and private fleet management services for organizations of all sizes. These solutions and services help Descartes' customers reduce administrative costs, billing cycles, fleet size, contract carrier costs, and mileage driven and improve pick up and delivery reliability. Our hosted, transactional and packaged solutions deliver repeatable, measurable results and fast time-to-value. Descartes customers include an estimated 1,600 ground carriers and more than 90 airlines, 30 ocean carriers, 900 freight forwarders and third-party providers of logistics services, and hundreds of manufacturers, retailers, distributors, private fleet owners and regulatory agencies. The company has over 300 employees and is based in Waterloo, Ontario, with operations in Atlanta, Pittsburgh, Ottawa, Washington DC, Derby, Stockholm, Shanghai, Singapore and Melbourne. For more information, visit www.descartes.com.
Media Contact
Nicole German
Descartes Systems Group
1-416-741-2838 ext. 298
ngerman@descartes.com
This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relate to Ocean Tariff Bureau's, Blue Pacific's and Descartes' solution offering and potential benefits derived therefrom; future amounts of additional purchase price that may be payable dependent on the performance of the acquired assets; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, "Certain Factors That May Affect Future Results" in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.