Descartes Systems announces acquisition of Velocity Mail
The logistics and supply chain management software has announced its acquisition of certain assets of Velocity Mail, the transportation network.
The deal has been valued at US$25.5mn and has been paid in cash. The finance was provided by Descartes’ existing acquisition of line of credit.
Velocity Mail has worked to connect commercial airlines and logistics partners with government postal authorities for more than 15 years.
Through the network company – headquartered in Denver, Colorado – carriers are able to monitor and track shipments more accurately in real time.
“With more than 60% of cross-border ecommerce transactions shipped using postal providers, the growth of ecommerce has fuelled an increase in the market for Velocity Mail’s solutions,” said Ken Wood, EVP of Product Management at Descartes.
“Global air carriers need to have access to timely and reliable information about the movement of mail and parcel shipments to operate efficiently and meet postal authority service level agreements. Velocity Mail’s network operates with similar fundamentals to the Descartes Global Logistics Network (GLN).”
“It helps parties connect and share information, while value-added business applications that are part of the network leverage that information to increase efficiencies and improve decision-making.”
“Global air carriers and their partners are key constituents on our Global Logistics Network,” said Edward J. Ryan, Descartes’ CEO.
“By combining Velocity Mail’s solutions with the Descartes Global Air Messaging Gateway, the air carriers will now have one platform to manage the lifecycle of all shipments, both ecommerce focused mail and parcel shipments and larger freight shipments.”
“The combination also strengthens our position in the growing global ecommerce market.”