The $18.4bn Australian technology company WiseTech Global is weighing an acquisition of US company Envase Technologies.
Envase Technologies is a company that provides technology for the freight industry and was formed in 2020 with its first acquisition.
Sources estimate it to be worth about $500m.
WiseTech did not comment to DataRoom on Tuesday about a potential purchase of the business, but it said in a statement to the Australian Securities Exchange following this column’s report that it continues to evaluate a number of opportunties.
Shares in WiseTech were up more than 4 per cent to $58.66 before the close of trade and while the company did not need to raise equity to buy the business, it may move to tap the market to capitalise on its buoyant share price.
Envase, based in New Hampshire, describes itself as a company that builds new solutions to revolutionise and digitise the life cycle of a container.
It builds cloud-based transport management system technology to assist short transport businesses and is owned by The Firmament Group, a New York-based private equity firm which invests in intermodal transport management software.
When delivering its full year results on August 24, WiseTech Global chief executive Richard White said that the company continued to look at larger, strategically significant acquisition opportunities supported by its strong balance sheet, cash flow and funding options.
It was also actively looking at further “tuck-in” acquisition opportunities which are typically smaller in size but could rapidly add value.
WiseTech Global develops and provides software solutions to 18,000 logistics companies across 165 countries through its core product CargoWise, including 33 of the top 50 global third party logistics providers and 24 of the 25 largest global freight forwarding companies internationally.
The company’s revenue for the 2022 financial year increased $632.2m, up 25 per cent on the previous corresponding period at the top end of its guidance range, while its earnings before interest, tax, depreciation and amortisation gained 54 per cent to $319m.
WiseTech said it expected its EBITDA to grow between 21 per cent and 30 per cent for the 2023 financial year.
The company listed in 2016 with a $970m market value and at that time was advised by Credit Suisse and Morgan Stanley.
But WiseTech is also understood to be close to JPMorgan.
The company has been on the hunt for acquisition opportunities for some time and is believed to be weighing a US purchase at a time that the price of technology companies have fallen this year as the world recovers from harsh lock downs to stem the spread of Covid-19 over the past two years that saw the value of technology companies soar to giddy heights.
Global funds are also scanning buyout opportunities in Australia, with Thomo Bravo making a $1.1bn buyout proposal for the Australian listed mapping software company Nearmap, which emerged on August 15.
Nitro Software remained in a trading halt on Tuesday as Australian-based private equity group Potentia Capital looks to buy the $276m company.
Other logical Australian listed targets in the technology space are Bravura Solutions, Nuix, Tyro Payments and Next DC.
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