Descartes Systems Group To Acquire Certain Assets Of Cube Route
On-demand logistics software and services specialist, The Descartes Systems Group Inc., signed a definitive agreement to acquire certain assets of privately-held Toronto, Ontario-based company, Cube Route Inc. The all-cash transaction is scheduled to close during Descartes' fiscal quarter ending January 31, 2007.
Cube Route provides on-demand logistics management solutions that include planning, routing, sequencing and optimizing of delivery routes, real-time driver and vehicle tracking, and delivery route analysis. Offered on a pay-as-you-go subscription basis, Cube Route's solution for last mile logistics is used by distribution-sensitive organizations to lower operating costs, improve customer service and reduce operational complexity.
Adrian Gonzalez, ARC Advisory Group, commented, "Cube Route validated the On Demand model for fleet management solutions. Since its founding in 2003, the company acquired a strong base of clients, including Home Depot, Crate & Barrel, and Peapod. Why did Descartes acquire certain assets of the company if they already have a leading portfolio of fleet management and delivery solutions? Simply stated, Descartes existing solutions are best suited for clients with relatively complex planning and execution requirements, while Cube Route's solution and deployment model are a better fit for customers with more basic requirements. Also, the solution fits nicely with other Descartes offerings, such as TMS, wireless communications, and automated vehicle locator applications. Finally, Descartes has proven experience in operating an On Demand (or Software-as-a-Service) business."
