Descartes Eyes $43 Million European Acquisition

Descartes Systems Group plans to spend about $43 million in cash to acquire Belgian logistics software company Porthus and gain a bigger foothold in Europe.

The cash offer is a 20 percent premium over Porthus’ stock value, and must be approved by the Belgian government. The deal is backed by Porthus’ management.

The acquisition underscores strong demand for logistics and trade software in the recession and the early stages of global economic recovery.

Descartes, which provides trade management and logistics software to about 1,600 customers, grew during the recession and is poised to take advantage of expansion in international trade. “In a global economy, our mutual customers are looking for solutions that help them address complex requirements in numerous jurisdictions,” said Art Mesher, CEO of Waterloo, Ontario-based Descartes.

Porthus provides global trade management software to about 1,000 customers, mainly in Europe. It has headquarters in Lier, Belgium.

"As the market for trade management solutions is rapidly globalizing, it makes perfect sense to us to combine forces of two of the sector's pioneers on both sides of the Atlantic,” Porthus Chairman Peter Hinssen and CEO Luc Burgelman said in a statement.

Contact William B. Cassidy at wcassidy@joc.com.