- E2open Parent Holdings, Inc. (NYSE: ETWO) recently announced it is buying Logistyx for $185 million. This is why.
E2open Parent Holdings, Inc. (NYSE: ETWO) – a leading network-based provider of a cloud-based, mission-critical, and end-to-end supply chain management platform – recently announced it has acquired Logistyx Technologies, a leader in global parcel and e-commerce shipping and fulfillment technology.
With this combination, E2open enhances its global footprint for multi-carrier e-commerce shipment management, offering companies a complete range of shipping capabilities needed to scale and respond to growing market needs.
The Logistyx combination with E2open accelerates subscription revenue growth and unlocks strategic benefits for clients, including
1.) Logistyx’s global parcel system augments E2open’s direct-to-consumer e-commerce offerings, creating a complete global footprint for multi-carrier parcel management.
2.) This combination adds a carrier library of over 550 global carrier integrations including UPS, FedEx, DHL, and USPS, to E2open’s leading network. The solution manages the carrier certification process to keep clients in compliance while making it easier to compare and review spot rate options, which is critical in a capacity-constrained environment.
3.) E2open’s client base will be enhanced by Logistyx’s strong global enterprise clients – which include many of the world’s leading retailers, manufacturers, and carriers.
4.) Logistyx’s clients will benefit from a combined portfolio that will not only expand shipping modes beyond parcel but also enhance upstream capabilities to better orchestrate manufacturing, distribution, channel, and trade operations.
E2open had acquired Logistyx Technologies for a total purchase price of $185 million, including $90 million paid in cash at closing and the remaining balance to be paid in two additional installments at 90 days and 180 days post-closing. And E2open has the option to finance the remaining payments through cash or a combination of cash and E2open stock issued to sellers, at the company’s discretion.
The deal was unanimously approved by E2open’s Board of Directors.
KEY QUOTES:
“We are excited to welcome Logistyx Technologies’ team, clients, and capabilities to E2open. The demand for e-commerce shipping capabilities continues to grow as companies look for more flexible and cost-effective ways to deliver products to consumers. This combination makes E2open the most comprehensive and integrated shipping solution provider, which covers all shipping modes including ocean, air, road, rail, and parcel, and is powered by a global network of carriers and logistics service providers. Logistyx is complementary to E2open’s existing platform, enabling E2open’s world-class clients to orchestrate their supply chains from demand to fulfilment, to supply.”
– Michael Farlekas, chief executive officer at E2open
“The Logistyx team is thrilled to combine with E2open to enable more companies to ship smarter and benefit from the largest supply chain platform and network available. We provide our customers, which include top retailers, manufacturers and logistics providers, the automation, visibility and flexibility needed to simplify global fulfillment and compete in an omnichannel world – all within a one-stop, connected platform.”
– Geoffrey Finlay, chief executive officer at Logistyx
