Australia’s WiseTech Global Ltd. has agreed to acquire E2open Parent Holdings Inc. for $2.1 billion, marking its largest acquisition to date. The deal adds 5,600 customers and will be earnings-accretive in the first year, according to WiseTech.
The acquisition comes shortly after founder Richard White became executive chairman in February following controversy over his personal conduct. Despite earlier stock volatility, WiseTech shares rose as much as 6.7% in early Sydney trading and are now up 40% from April lows.
“This is a pivotal moment,” White said, calling the deal a “huge step” toward making WiseTech the go-to operating system for global logistics.
E2open, which employs 4,000 people and earned $608 million in revenue last fiscal year, will help WiseTech offer end-to-end supply chain software — from order to delivery.
WiseTech will pay $3.30 per share, a 28% premium, funded entirely through a $3 billion debt facility arranged by major global banks including Bank of America, Deutsche Bank, HSBC, and JPMorgan.