“What it’s done is world-leading stuff. It’s enormously powerful and we can take that and extend it both here in Australia, New Zealand and Singapore and into markets like Europe and the US to improve the supply chain,” he said.
“This isn’t a normal acquisition [for us] … there’s a strong core business in Containerchain, which is profitable and powerful and a big development for us toward new markets.”
The deal, its 12th acquisition since July, is outside WiseTech’s usual low-cost acquisitions aimed at geographic expansion.
Containerchain counts businesses such as Qube Holdings, Arrow Transport and Logistics, ANL Container Line and Cogent Holdings as customers and covers more than 5 million import and export container movements annually. It provides a single platform for optimising the movement of containers from port to door and back again.
Containerchain recorded $14.4 million revenue In the 2018 financial year. It will be consolidated into WiseTech’s accounts from April.
Share price down
The deal, which closed at 7am on Tuesday, led WiseTech to upgrade its full-year revenue guidance from a range of 45 to 51 per cent growth to 47 to 53 per cent, while it narrowly lowered its earnings before interest, tax, depreciation and amortisation forecast to between $100 million and $105 million, down from $102 million to $100 million.
On the back of the update, investors pushed WiseTech’s share price down 3.67 per cent by 12.30pm to $18.35. The share price fall means the stock price has now declined more than 20 per cent since its half-year results last week. Investors had hoped for a larger upgrade to earnings and were disappointed by its lower EBITDA margin of 31 per cent.
Mr White said the logistics sector was “surprised and delighted” with the takeover, having spoken at an event on Tuesday with representatives of major import and export companies such as Visy and Coca-Cola Amatil.
“We can get Containerchain, further, faster and better and we can do more with their asset,” he said. “It’s a good deal for shareholders, for customers and for CargoWise Nexus.”
Containerchain managing director Chris Collins said the sector had been asking for such a platform for some time. The combination of Containerchain’s landside container management ecosystem and WiseTech’s global CargoWise One execution platform would allow the companies to “enhance this connectivity and ultimately deliver true door-to-door shipper visibility and optimisation,” he said.
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