WISETECH GLOBAL LIMITED — M&A Activity 2018

Oct 16, 2018

ASX Announcement: 2018/44

17 October 2018

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WTC acquires SmartFreight, a leading parcel shipping and LTL TMS software provider

Global logistics solutions group, WiseTech Global, today announced the acquisition of IFS Global Holdings (‘SmartFreight’), a leading parcel and LTL (Less Than Truckload) shipping software provider.

Headquartered in Sydney, SmartFreight offers multi-carrier shipping software solutions to over 3,300 customers across Australia, New Zealand, the United Kingdom, Ireland, South Africa and Asia. Their solutions address traditional bricks and mortar, B2C and B2B customers across all industries including organisations such as 3M, Mazda, Hyundai, Seiko, Epson and Pandora Jewellery, as well as transport and logistics providers such as DHL, Australia Post Group, Parcelforce, TNT, Toll Group, Aramax and Royal Mail. In Australia alone, SmartFreight processes over 50 million parcels annually.

WiseTech Global Founder and CEO, Richard White, said “As e-commerce continues its rapid exponential growth, the importance of omni-channel parcel and LTL shipping for customers, and the logistics industry globally, will increase by an order of magnitude. We value the parcel logistics and technical expertise within the SmartFreight teams and their extensive coverage of parcel and LTL carriers and rates, with electronic connections to over 650 carriers, in Australia, New Zealand, Ireland, the UK and South Africa. These adjacent markets complement those covered by our other WiseTech businesses – parcel shipping TMS provider, Pierbridge , and specialist LTL TMS provider, SaaS Transportation , while our Gartner-rated specialist WMS, Microlistics , can beneficially partner with SmartFreight for e-commerce fulfilment domestically in these crossover geographies.

“Importantly, bringing SmartFreight into the WiseTech group will also accelerate the global expansion of our next-generation CargoWise One e-commerce offering for both international and domestic e-commerce fulfilments. This innovative solution is in pilot with a major air-freight forwarder and will soon be launched globally for country-of-origin depot functionality – a great fit with SmartFreight capabilities.”

The purchase cost comprises $20.0m upfront, with a further expected multi-year earn-out potential of ~$35m in relation to business and product integration, customer transition and 2020 revenue performance. With FY18 annual revenue of ~$7.9m and ~$1.0m contribution to EBITDA, this transaction, while of strategic value, is not material to the WiseTech Global group[1] . SmartFreight is expected to be consolidated into WiseTech Global accounts from November 2018.

Remaining under the leadership of Managing Director, Ken Aitken, SmartFreight will continue to work with their partners to deliver innovative parcel shipping solutions to shippers worldwide. SmartFreight will also have access to the 8,000 logistics providers across the world who utilise WiseTech’s integrated supply chain execution solutions.

Along with our recent acquisitions in Argentina, Australasia, Belgium, Brazil, Canada, France, Germany, Ireland, Italy, the Netherlands, North America, Spain, Taiwan, Turkey, and Uruguay, this adjacency transaction is in line with our stated strategy of accelerating long-term organic growth through targeted, valuable acquisitions.

//ENDS

1 Historical revenues and EBITDA figures for acquired businesses should not be considered guidance for future financial contribution due to their differing licence arrangements, the extent of non-recurring revenue (such as one-off development and consulting income) and the potential impact of integration.

About WiseTech Global

WiseTech Global is a leading developer and provider of software solutions to the logistics execution industry globally. Our customers include over 8,000 of the world’s logistics companies across 130 countries, including 34 of the top 50 global third-party logistics providers and 24 of the 25 largest global freight forwarders worldwide[[1]] . Our flagship product, CargoWise One, forms an integral link in the global supply chain and executes over 54 billion data transactions annually. At WiseTech, we are relentless about innovation, adding more than 3,000 product enhancements to our global platform in the past five years while bringing meaningful continual improvement to the world’s supply chains. Our breakthrough software solutions are renowned for their powerful productivity, extensive functionality, comprehensive integration, deep compliance capabilities, and truly global reach.

The WiseTech Global group includes CargoWise One, ABM Data Systems, ACO Informatica, BorderWise, Bysoft, Cargoguide, CargoSphere, CMS Transport Systems, CustomsMatters, DataFreight, EasyLog, Fenix, Forward, Intris, LSP Solutions, Microlistics, Multi Consult, Pierbridge, Prolink, SaaS Transportation, Softcargo, Softship, Taric, Trinium Technologies, Ulukom, zsoft and znet group.

For more information about WiseTech Global or CargoWise One, please visit wisetechglobal.com

About SmartFreight®

Founded in 1997, SmartFreight specialises in multi-carrier LTL and parcel shipping solutions. Customers include organisations such as 3M, Mazda, Hyundai, Seiko, Epson and Pandora Jewellery, as well as transport and logistics providers such as Australia Post Group, DHL, Toll Group, Aramax, Parcelforce, TNT, and Royal Mail.

SmartFreight provides its clients with an agnostic optimisation selection from their chosen transport providers, shipping by price/service/delivery time or CO2 footprint coupled with client branded end-end tracking visibility and final transport provider invoice reconciliation.

Headquartered in Sydney, with distribution networks in New Zealand, South Africa, Ireland and the UK, SmartFreight has a team of over 50, together providing considerable logistics and technical expertise. SmartFreight has won 10 Australian Business Award Wins in the last seven years. ‘SmartFreight’ refers to the parcel shipping solutions provider, IFS Global Holdings Pty Ltd.

For more information on SmartFreight visit www.smartfreight.com

Contact information

INVESTOR RELATIONS

Gail Williamson, Chief Growth Officer + 61 2 8001 2200 investor.relations@wisetechglobal.com

MEDIA

Piers Shervington + 61 2 8001 2200 piers.shervington@wisetechglobal.com

[1] Armstrong & Associates: Top 50 Global Third Party Logistics Providers List, ranked by 2017 logistics gross revenue/turnover. Armstrong & Associates: Top 25 Global Freight Forwarders List, ranked by 2017 logistics gross revenue/turnover and freight forwarding volumes.

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