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The Descartes Systems Group Inc.
Company typePublic
Industry
FoundedMay 22, 1981; 43 years ago (1981-05-22)
HeadquartersWaterloo, Ontario, Canada
Area served
Worldwide
Key people
ProductsSoftware-as-a-service applications for logistics and supply chain management
ServicesDescartes Global Logistics Network
RevenueIncrease US$ >500 million (2023)[1]
Increase US$ 37.0 million (2020)[1]
Total assetsIncrease US$ 942.6 million (2020)[1]
Total equityIncrease US$ 821.7 million (2020)[1]
Number of employees
2000+
Websitedescartes.com

The Descartes Systems Group Inc. (commonly referred to as Descartes) is a Canadian multinational technology company specializing in logistics software, supply chain management software, and cloud-based services for logistics businesses.

Descartes is perhaps best known for its abrupt and unexpected turnaround in the mid-2000s after coming close to bankruptcy in the wake of the dot-com bubble collapse. It is also known as one of the earliest logistics technology companies to adopt an on-demand business model and sell its software as a service (SaaS) via the Internet. In addition, the company operates the Global Logistics Network, an extensive electronic messaging system used by freight companies, manufacturers, distributors, retailers, customs brokers, government agencies, and other interested parties to exchange logistics and customs information.

Headquartered in Waterloo, Ontario, Canada, Descartes is a publicly traded company with shares listed on the NASDAQ Stock Market (NASDAQ: DSGX) and Toronto Stock Exchange (TSX: DSG). It has offices in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region.

History

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Descartes was founded in 1981.[2]

In 1998, the company made an initial public offering on the Toronto Stock Exchange,[3] where its common shares traded under the stock symbol DSG.[4] Descartes was first listed on the NASDAQ Stock Market in 1999,[3] with common shares trading under the symbol DSGX.[5] Descartes’ share price peaked during the dot-com bubble and then fell precipitously in the subsequent crash.[3][6]

In 2001, Descartes switched its business model from selling full-featured enterprise software licenses to providing on-demand software on a subscription basis, becoming one of the first SaaS providers in the logistics sector.[7][8][9] After years of losses, Descartes came close to bankruptcy in 2004,[6][7] prompting it to aggressively restructure.[10][11] The company cut 35% of its workforce[12] and initiated a sweeping transformation of its corporate culture under CEO Arthur Mesher, who was appointed in 2005.[6][13][14]

The company returned to profitability in 2005,[15] with one analyst[who?] describing this as "one of the most dramatic turnarounds in Canadian corporate history."[14]

In December 2013, Descartes was added to the S&P/TSX Composite Index, an index of the stock (equity) prices of the largest companies on the Toronto Stock Exchange.[16]

By January, 2015, Descartes had posted 41 straight profitable quarters[17] and was supplying logistics software and services to more than 10,000 logistics-centric businesses, such as ground transportation companies, airlines, ocean carriers, freight forwarders, manufacturers, distributors, and retailers.[18][19][20][21][22][23] Its customers included American Airlines, Delta Air Lines, Air Canada, British Airways, Maersk Group, Hapag-Lloyd, Con-way, Kuehne + Nagel, DHL, The Home Depot, Sears Brands, Hallmark Cards, Hasbro, Volvo, Ferrellgas, Del Monte, and The Coca-Cola Company.

In 2018, Gartner ranked Descartes 6th in its list of the Top 20 Supply Chain Management Software Suppliers, based on revenue of $221 million.[24]

Acquisitions

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Acquisitions have played a key role in Descartes’ growth.[25][8][26][27] By acquiring niche technology companies, Descartes has expanded its line of logistics software and services, enlarged its customer base, and extended its business geographically.[7][28][29][30]

Acquisitions going back to 2006 are listed below.

Year Acquired Company Specialty Country References
2006 ViaSafe Cross-border and regulatory compliance software Canada [31]
2006 Flagship Customs Services Customs filing software US [32]
2006 Cube Route On-demand logistics management software Canada [33]
2007 Ocean Tariff Bureau and Blue Pacific Services Tariff filing & contract publishing and surety bonds for ocean intermediaries US [8]
2007 Global Freight Exchange Electronic air cargo booking system UK [34]
2007 RouteView Technologies Delivery management software US [35]
2008 Pacific Coast Tariff Bureau Regulatory compliance services US [36]
2008 Mobitrac Fleet Management Business Fleet routing and scheduling SaaS US [37]
2008 Dexx European customs filing and logistics messaging Belgium [38]
2009 Oceanwide SaaS customs and regulatory compliance Canada/US [39]
2009 Scancode Systems Parcel and LTL shipping software Canada [40]
2010 Porthus Global trade management software Belgium [41]
2010 Imanet On-demand Canadian customs filing software Canada [42]
2010 Routing International Route planning software Belgium [43]
2011 Telargo Fleet telematics data gathering software and services US/Slovenia/Hong Kong [44]
2011 IntercommIT Electronic exchange of trade data Netherlands [45]
2012 GeoMicro Vehicle routing and navigation technology US [46]
2012 Infodis Transportation management SaaS Netherlands [47]
2012 Integrated Export Systems Logistics SaaS US/Hong Kong [48]
2012 Exentra EU driver compliance SaaS UK [49]
2013 KSD Software Norway Electronic customs filing software for the EU Norway [50]
2013 Impatex Freight Software Electronic customs filing and freight forwarding software UK [51]
2013 Compudata Supply chain integration and e-invoicing software Switzerland [52]
2014 Computer Management Security information filing services and air cargo management software US [53]
2014 Customs Info Trade data and research tools US [54]
2014 Airclic Mobile logistics automation software US [55]
2014 Pentant Customs connectivity and import/export software UK [56][57]
2014 e-customs Electronic security and customs filing software UK [56][57]
2015 MK Data Services Denied party screening data and software US [58]
2015 BearWare Mobile carton tracking technology for retailers US [58][59]
2015 Oz Development Logistics automation software for SMEs US [60]
2016 Pixi Software e-Commerce order fulfillment and warehouse management software Germany [61]
2016 Appterra Business-to-business supply chain SaaS US [30]
2016 4Solutions Cloud-based supply chain integration Australia [62]
2016 Datamyne Cloud-based trade data US [63]
2017 ShipRush e-Commerce parcel shipping software US [64]
2017 PCSTrac Shipment tracking software for retailers US [65]
2017 MacroPoint Freight tracking technology US [66]
2018 Aljex Software Cloud-based transportation management US [67]
2018 Velocity Mail Shipment tracking service for airlines US [68]
2018 PinPoint GPS Solutions Fleet tracking/mobile workforce technology Canada [69]
2019 Visual Compliance Restricted and denied party screening US [70]
2019 Core Transport Technologies Accurate tracking of international mail, parcel, and cargo shipments New Zealand [71]
2019 STEPcom Business-to-Business supply chain integration network Switzerland [72]
2019 BestTransport Transportation management system provider US [73]
2020 Peoplevox Cloud-Based eCommerce WMS UK [74]
2020 Kontainers Logistics SaaS UK [75]
2020 ShipTrack Cloud-Based Logistics platform for Final-Mile Deliveries Canada [76]
2021 QuestaWeb A leading provider of foreign trade zone (FTZ) and customs compliance solutions US [77]
2021 Portrix Logistic Software Streamlines and automates complex global shipping rate management processes Germany [78]
2021 GreenMile Cloud-based mobile route execution solutions for food, beverage, and broader distribution verticals US [79]
2022 NetCHB Cloud-based platform to streamline and automate customs filing processes in the US US [80]
2023 GroundCloud Cloud-based provider of final-mile carrier solutions and road safety compliance tools US [81]
2024 BoxTop Technologies UK-based shipment management provider UK [82][83]
2024 Sellercloud US-based multi-channel e-commerce inventory and order management US [84]

Global Logistics Network

[edit]

Descartes’ cloud-based logistics messaging system, the Global Logistics Network (GLN), connects more than 13,000 customers in over 160 countries,[22][27] making it one of the world’s largest logistics networks. Each year, the GLN carries more than 4.5 billion messages and manages more than 30 million shipping routes.[85]

Companies use the network to oversee shipping orders, file customs paperwork, comply with security regulations, share information across international supply chains, and automate logistics processes.[7][23][86][87] In 2015, Descartes signed a deal with German business software giant SAP SE that allows users of SAP’s transportation management software to access the GLN.[86]

References

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  1. ^ a b c d "Descartes Systems Group" (PDF). Descartes. Retrieved May 22, 2020.
  2. ^ "Descartes Systems Group Inc. - Profile". Business Insider. Archived from the original on March 12, 2017. Retrieved March 9, 2017.
  3. ^ a b c "Descartes executives to depart". The Globe and Mail. April 22, 2009. Retrieved July 29, 2016.
  4. ^ "Descartes Systems Group Inc. (The)". TMX Money. Retrieved August 21, 2016.
  5. ^ "Descartes Systems Group Inc. (The) Common Stock Quote & Summary Data". Nasdaq. Retrieved August 21, 2016.
  6. ^ a b c Pitts, Gordon (July 19, 2009). "CEO's bold prescription for profit turnaround". The Globe and Mail. Retrieved July 26, 2016.
  7. ^ a b c d Field, Alan (March 29, 2010). "Descartes Systems Group: Logistics software and services provider helps customers deliver". Canadian Sailings. Great White Publications. Retrieved July 25, 2016.
  8. ^ a b c Field, Alan (September 2, 2007). "Descartes' expansion strategy". The Journal of Commerce. Retrieved July 28, 2016.
  9. ^ Saccomano, Ann (April 6, 2003). "Still standing". The Journal of Commerce. Retrieved October 20, 2016.
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  33. ^ Witt, Clyde (November 1, 2006). "Descartes Acquires Assets of Cube Route". Material Handling & Logistics. Retrieved October 20, 2016.
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  36. ^ Smith, Briony (January 9, 2008). "Descartes snaps up Pacific Coast Tariff Bureau for $2.1-million". IT World Canada. Retrieved August 8, 2016.
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  41. ^ "Descartes Systems (DSGX) Subsidiary Offers €12.50/Share for Zemblaz NV". Street Insider. February 22, 2010. Retrieved August 8, 2016.
  42. ^ Gallagher, Thomas (April 21, 2010). "Descartes Acquires Imanet". The Journal of Commerce. Retrieved August 8, 2016.
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  53. ^ Lavigne, Grace (April 1, 2014). "Descartes Acquires US-Based Air Freight Solutions Firm". The Journal of Commerce. Retrieved October 20, 2016.
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  55. ^ DiStefano, Joseph (November 24, 2014). "Canadian firm buys AirClic for $30M". The Philadelphia Inquirer. Retrieved October 20, 2016.
  56. ^ a b "Descartes expands European reach with two acquisitions". The Journal of Commerce. December 8, 2014. Retrieved October 20, 2016.
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  58. ^ a b Simone, Rose (July 23, 2015). "Descartes acquires company that keeps track of who not to do business with". Waterloo Region Record. Retrieved July 20, 2016.
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  69. ^ "Descartes buys PinPoint in move to capture more real-time vehicle data as Canada plans ELD mandate". DC Velocity. August 22, 2018. Retrieved December 13, 2018.
  70. ^ "Descartes pays $250 million for denied party screening software vendor". DC Velocity. January 28, 2019. Retrieved January 28, 2019.
  71. ^ "Descartes Systems Group acquires Core Transport Technologies". DC Velocity. May 13, 2019. Retrieved May 13, 2019.
  72. ^ "Descartes Acquires STEPcom". DC Velocity. July 9, 2019. Retrieved July 9, 2019.
  73. ^ "Descartes Acquires BestTransport". Nasdaq.com. August 21, 2019. Retrieved August 21, 2019.
  74. ^ "Descartes Acquires Peoplevox". globenewswire.com (Press release). February 24, 2020. Retrieved February 24, 2020.
  75. ^ "Descartes Acquires Kontainers". globenewswire.com (Press release). June 11, 2020. Retrieved June 11, 2020.
  76. ^ "Descartes Systems acquires ShipTrack for $19M". freightwaves.com. November 6, 2020. Retrieved November 8, 2020.
  77. ^ "Descartes Acquires QuestaWeb for $36M". finance.yahoo.com. March 1, 2021. Retrieved March 1, 2021.
  78. ^ "Descartes Acquires Portrix Logistics Software". globenewswire.com (Press release). May 10, 2021. Retrieved May 10, 2021.
  79. ^ "Descartes Acquires GreenMile". globenewswire.com (Press release). July 8, 2021. Retrieved July 8, 2021.
  80. ^ "Descartes Acquires NetCHB". globenewswire.com (Press release). February 10, 2022. Retrieved February 11, 2022.
  81. ^ "Descartes Acquires GroundCloud". globenewswire.com (Press release). February 14, 2023. Retrieved February 14, 2023.
  82. ^ "Descartes Systems Group buys BoxTop Technologies for US$13-million". The Globe and Mail. 2024-06-11. Retrieved 2024-10-10.
  83. ^ "Descartes acquires UK-based logistics platform BoxTop for $18 million CAD | BetaKit". 2024-06-12. Retrieved 2024-10-10.
  84. ^ "Descartes Systems Group (DSGX) Acquires Sellercloud". streetinsider.com. 2024-10-14. Retrieved 2024-10-14.
  85. ^ Waddell, Nick (October 13, 2016). "Descartes' acquisition of Apterra gets thumbs up at Cantor Fitzgerald". Cantech Letter. Cantech Communications. Retrieved October 20, 2016.
  86. ^ a b Chao, Loretta (July 29, 2015). "SAP Links With Descartes for Transportation Management Service". The Wall Street Journal. Retrieved July 29, 2015.
  87. ^ Cassidy, William (January 9, 2016). "Canadian eManifest deadline looms for US truckers". The Journal of Commerce. Retrieved July 28, 2016.
[edit]
  • Official website
  • Business data for The Descartes Systems Group:
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