Descartes to Buy Visual Compliance for $250 Million
Descartes Systems Group will acquire a group of companies run by Management Systems Resources, including Visual Compliance and eCustoms, Descartes said in a news release. "Visual Compliance provides software solutions and services to automate customs, trade and fiscal compliance processes,…
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with a focus on denied and restricted party screening processes and export licensing," Descartes said. Visual Compliance has more than 2,000 customers with more than 67,500 subscribers and, like Descartes, is based in Canada, Descartes said. Descartes will pay about $250 million, including working capital acquired, and the acquisition is structured as a combination of asset and share purchases, it said. “The penalties for doing business with sanctioned parties can be far reaching and severe,” said Ken Wood, Descartes executive vice president-product management. “By adding Visual Compliance’s solutions and domain expertise to our existing Descartes MK Data denied parties screening business and Global Logistics Network, we’re in an even stronger position to help our customers navigate the trade compliance landscape while managing the full lifecycle of their shipments.” The deal was brought to Descartes following the recent death of Visual Compliance's founder, Descartes CEO Ed Ryan said during an investor call about the transaction.