Descartes buys transport messaging arm of BCE Emergis

WATERLOO, Ont. (Dec. 27, 2000) — Descartes Systems Group Inc., the developer of high-end supply-chain management software, agreed to buy the transportation messaging arm of BCE Emergis Inc. for about $70 million in cash and stock.

The BCE Emergis unit helps shippers and freight carriers track messages, shipments, and customs information. Descartes provides software that connects transport companies to their customers over the Internet.

More than 30 air carriers, 200 land carriers, 20 ocean carriers, 50 shippers and distributors, 200 freight forwarders, and 2000 customs brokerage offices use BCE Emergis for messaging, including British Airways, FedEx Corp., and American Airlines. Nearly 80% of air-cargo freight messaging in North America and 50% worldwide will be carried by Descartes, the company said.

“For shippers on the Descartes network, the strategic alliance means greater access to more carriers to meet time and cost constraints,” said Descartes chairman Peter Schwartz. “For carriers on the Descartes network, the strategic alliance creates opportunities to identify new revenue and cost-saving opportunities through collaborative logistics practices.”

The deal includes joint marketing and sales agreements. BCE Emergis will sell Descartes’ DeliveryNet services to its customers. DeliveryNet is a worldwide network of shippers, receivers and carriers using Descartes’s network.