WiseTech Global Ltd (ASX: WTC) shares have recovered from the early morning sell-off to be back in the green at the time of writing.
Shares in the S&P/ASX 200 Index (ASX: XJO) logistics software solutions company closed yesterday at $126.23. In late morning trade on Tuesday, they are swapping hands for $126.69 apiece, up 0.36%.
That sees WiseTech shares up in impressive 80.2% since this time last year. Shares also trade on a slender, fully franked 0.1% trailing dividend yield.
Now, here's what's happening with the company's latest acquisition.
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WiseTech shares to incorporate ImpexDocs
WiseTech shares may have taken an initial leg down this morning after the company revealed its intent to issue some 56,247 new shares.
According to the company's ASX release:
New shares will be issued to part-fund the consideration in relation to the acquisition of the business and assets of Acme Trade Group Pty Ltd. An estimated 56,247 new shares will be issued in respect of the $7.1 million equity consideration value.
The actual number of new shares to be issued will be based on the equity consideration value and a 10-day volume weighted average price of WiseTech shares shortly before the date of issue.
Speculating on the late morning rebound in WiseTech shares, investors may have run their slide rules over the proposed acquisition and concluded that it will add long-term value to the ASX 200 tech company.
As reported on WiseTech's website, the CargoWise developer said it had entered into an agreement to acquire Sydney-based ImpexDocs from Acme Trade Group.
ImpexDocs offers a suite of Global Trade Management (GTM) solutions to centralise, digitise, and automate international trade workflows. Established in 2003, the company has clients in Australia and New Zealand.
ImpexDocs will remain under the current leadership of its founder, Manish Desai.
Commenting on the potential benefits of the acquisition for WiseTech shares, chief execution officer Vlad Bilanovsky said:
The acquisition of ImpexDocs brings proven GTM capability to WiseTech's solutions as well as a team of domain experts in global trade execution and compliance. This will help accelerate ongoing product development within digital documentation — one of our six priorities to extend the CargoWise ecosystem.
ImpexDocs' CEO Manish Desai added:
We are excited about the opportunities enabled by joining WiseTech as the global reach and extensive resources will help bring ImpexDocs' solution to a much larger potential market, while opening new career opportunities for our team members.
WiseTech noted that completion of the acquisition remained subject to certain conditions precedent, including regulatory approval.
