• GroundCloud’s cloud-hosted software platform reportedly combines safety, operations, and compliance.
  • By using GroundCloud, Descartes intends to enhance its final-mile capabilities by placing community and worker safety at first instance.

Descartes Systems Group Inc., a logistic and supply chain software-as-a-service company, recently said that it has acquired the creator of a cloud-hosted final-mile automation platform, GroundCloud, for USD 138 million.

One of the oldest enterprise software firms on the block, Descartes, was founded in 1981. It is typically into selling a suite of software products focused on managing logistics and supply chains. Companies can use this software to quickly scan and manage logistic processes like invoices, delivery resources, shipments, and comprehensive documentation more efficiently.

The company majorly targets logistic providers, transportation providers, and distribution-intensive enterprises. The Emirates Group, Air Canada, United Parcel Service of America Inc, and The Home Depot Inc are some of its clients.

By purchasing GroundCloud or Windigo Logistics Inc (official name), Descartes intends to enhance its final-mile delivery capabilities, placing community and worker safety at the frontline of its efforts.

GroundCloud’s cloud-hosted software platform reportedly combines safety, operations, and compliance. In addition, it is used by final-mile carriers to receive orders for customer delivery and respective planning and execution of routes depending on those orders. Not only this, it helps to monitor and train delivery drivers in safety and performance, to analyze the efficiency of logistics operations, and to manage assets and resources. GroundCloud’s platform also encompasses video telematics to operate event detection and verification as an element of its mandate to improve safety. It has helped companies to leverage generated insights to inform reactive training programs.

Andrew Roszko, Chief Commercial Officer of Descartes, said the company acquired GroundCloud because final-mile carriers require a more comprehensive approach to safety, compliance, and operations. He said, “This challenge is even more complex for the thousands of subcontracted delivery service providers working as agents for larger carriers. GroundCloud helps ensure seamless operations, end-to-end visibility, and standards of safety and compliance are met, including helping final-mile carriers comply with the various safety mandates of large transportation brands.”

Edward Ryan, Chief Executive of Descartes, stated, “When combined with Descartes, we see a tremendous opportunity to leverage GroundCloud’s safety content and compliance solutions across a wider set of industry verticals in our routing and mobile customer base.”

Descartes stated that to finance the USD 180 million, it used cash. Nonetheless, the final cost could rise by a maximum of USD 80 million, considering performance. It is based on attaining revenue targets in the first two years after acquisition.