Adds Parcel and Less-Than-Truckload Shipment Management Capabilities and More Than 500 Members to the Descartes Global Logistics Network

WATERLOO - Descartes Systems Group, a global on-demand software-as-a-service (SaaS) logistics solutions provider, acquired privately-held Scancode Systems Inc. (www.scancode.com), a developer and integrator of carrier-compliant parcel and less-than-truckload (LTL) shipping solutions, in an all-cash transaction.

Scancode provides its customers with a system that scales from the loading dock to the enterprise, providing up-to-date rates that allow the customer to both make efficient shipment decisions and comply with carrier manifesting and labelling requirements. Scancode's strength is in helping to manage small parcel shipments with postal services, a variety of small-package delivery carriers and over 150 LTL carriers. Scancode also has supporting warehouse and automated data collection functionality.

Scancode adds more than 500 members to Descartes' Global Logistics Network, including, parcel carriers, regional LTL truck carriers as well as numerous manufacturers, retailers and distributors. Scancode provides complementary services to Descartes' broader transportation management solutions with its enterprise shipping solutions that plan, pick, pack and manifest shipments. By gathering information at the loading dock and source of the shipment, Scancode's addition to the Global Logistics Network extends the shipment management process to support "the first mile" of the delivery/shipment and provides further detail and visibility to track that asset.

"Our carrier-compliant parcel and LTL shipping solutions are a natural extension of Descartes' Transportation Management solutions. As well, our small parcel carriers and shipper customers can benefit from being part of one of the world's largest logistics communities of connected trading partners," said Joe Mallozzi, Vice President of Sales and Marketing at Scancode and now Vice President of Transportation Management Solutions at Descartes. "Our combined offering enables organizations to manage their deliveries from the source right through to the delivery and access key data at the starting point of the shipment."

"Our focus is to bring together importers, exporters, customs brokers, transportation carriers, logistics intermediaries and regulatory and customs agencies around the world in a shared-services environment using standardized business processes," said Art Mesher, Descartes' CEO. "The acquisition of Scancode adds another dimension of services to the Descartes GLN and broadens the community of shippers and logistics service providers, enhancing the productivity and performance for all."

Scancode is based in Toronto, Ontario, Canada and has approximately 50 personnel. To complete the acquisition, net of working capital received, Descartes paid approximately CDN$8.5 million (approximately US$6.6 million) and incurred certain transaction expenses.