MENU

WiseTech Global Ltd shares rise on acquisition news

In morning trade the WiseTech Global Ltd (ASX: WTC) share price has edged higher after the serial acquirer announced its latest acquisitions.

At the time of writing the logistics platform provider’s shares are up almost 1% to $10.26.

What has WiseTech Global acquired this time?

WiseTech Global Limited has snapped up two leading Latin American freight forwarding and logistics solutions providers, Forward and Softcargo, and a leading French customs solutions provider, EasyLog.

According to the release, the aggregate consideration for these acquisitions comprise $10.1 million upfront plus further multi-year earnouts of up to $14.9 million. These relate to activities for integration, native CargoWise One product development, customer conversion, and revenue growth.

As with its previous acquisitions, these transactions are of strategic value and are not expected to be financially material. Management estimates that the three companies combined generated revenue of $6.7 million and EBITDA of $0.8 million in 2017. They are expected to be consolidated into WiseTech Global accounts from May 2018.

What do the companies do?

Argentina-based Forward offers freight forwarding management and accounting compliance solutions across South America and counts the likes of Damco, Delfin Group, Yusen Logistics, and Zach Logistics as customers.

Softcargo is a freight forwarding management and logistics solutions provider based in Montevideo, Uruguay. It operates across Chile, Colombia, Mexico, Uruguay and Argentina to customers such as Senator International, Röhlig, DB Schenker and Kerry Logistics.

France-based EasyLog provides a range of customs clearance and tracking solutions to customers including DHL Global Forwarding, Nippon Express, Air France Industries, and Sanofi.

Management believes that the acquisition of EasyLog is a key step in building out its European customs capabilities.

Should you invest?

Although these acquisitions may not be material, they could be stepping stones to a brighter future for the company. Which could arguably make WiseTech Global a great buy and hold investment option.

However, with its shares trading at 77x estimated forward earnings, I plan to wait to see if I can buy in at a more attractive price.

In the meantime, I see more value in the shares of tech peers Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).

Looking for the next tech investment like WiseTech Global? Then don't miss out on this opportunity.

The Richest Man Alive Invests in This

The richest man in the world has just launched a $100 million investment fund and investors who don't take note could miss out on a massive opportunity.

And it isn't by sheer luck. He did it by looking to the future and investing in the big ideas of tomorrow.

This could be your chance to get in on the ground floor!

Click here to discover more!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium, Appen Ltd, and WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!