Descartes, a global leader in logistics and supply chain management solutions, has acquired inventory and order management platform Sellercloud for $110 million in an upfront deal, with an additional $20 million based on revenue targets. The acquisition marks another step in Descartes’ expansion into e-commerce and omnichannel services.
Sellercloud, based in New Jersey, serves over 1,000 merchants, distributors, wholesalers, and manufacturers, offering a platform that helps users manage inventory across multiple sales channels, including fulfillment processes. The platform processes more than 150 million orders annually, valued at over $15 billion, making it a significant player in the e-commerce space.
Descartes aims to integrate Sellercloud’s advanced inventory and order management tools into its own suite of solutions. “Sellercloud expands our product suite with advanced inventory and order management capabilities that our customers have been asking for,” said Mikel Richardson, Descartes’ general manager of e-commerce. He highlighted that the integration with Descartes’ existing shipping, fulfillment, and warehouse management solutions will offer a unique full lifecycle management system for both domestic and cross-border e-commerce shipments.
Descartes funded the acquisition with cash on hand, ending its fiscal quarter with $252.7 million. This deal represents Descartes’ fifth acquisition this year, underscoring the company’s aggressive investment strategy. In addition to Sellercloud, Descartes recently acquired carrier-identity tech provider MyCarrierPortal for $24 million, shipment management services provider BoxTop Technologies for $13 million, and trade compliance provider OCR Services for $150 million, alongside Aerospace Software Developments.
CEO Ed Ryan reiterated the company’s focus on expanding its Global Logistics Network and noted that the Sellercloud acquisition complements previous investments in e-commerce platforms like XPS, ShipRush, pixi, and Peoplevox.
The additional $20 million performance-based payout for Sellercloud is contingent on revenue growth over the next two fiscal years, reflecting Descartes’ confidence in the platform’s potential to drive further business expansion.
