Logistics software company WiseTech Global has struck a $414m deal to buy rail solutions provider Blume Global.
The rail solutions company is being purchased from funds managed by Apollo, EQT and other minority shareholders.
Blume’s technology enables intermodal rail in North America.
The company handles intermodal containers and chassis for six of the seven Class 1 US railroads, ocean carriers as well as other intermodal equipment providers.
These providers include global freight forwarders and beneficial cargo owners (BCOs).
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Its platform enables railroads to manage their complete asset management and reservation process besides improving cost and operational efficiency.
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By GlobalDataUsing Blume assets, railroads can manage and track their crucial assets across the complete supply chain lifecycle.
WiseTech Global founder and CEO Richard White said: “This is another strategically significant acquisition that follows our acquisition of Envase Technologies last month.
“It further extends our capability in one of our six key CargoWise development priority areas, integrating rail into our landside logistics offering in North America, the most complex and largest logistics region in the world.”
Blume is projected to record FY24 revenues in the $65m to $70m range, along with FY24 earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins of around 10%.
Furthermore, the company is expected to hit cash-flow breakeven by the end of FY24.
Blume CEO Pervinder Johar said: “Joining the WiseTech Global group means greater scale and resources to make logistics processes more productive, agile, dependable, and sustainable with innovative execution and visibility solutions.
“We want to thank the team at Apollo for helping to stand up and grow Blume as a standalone company and are thrilled to embark on this next chapter to drive even greater digital innovation in this sector.”
