Descartes acquires PinPoint, adding scale and expertise to telematics and mobile solutions
Descartes Systems Group has acquired PinPoint, a leading provider of fleet tracking and mobile workforce solutions based in Canada.
PinPoint helps its customers collect real-time location information on trucks and mobile workers using technology, including Geotab (telematics) and SkyBitz (trailer tracking). This information is used by technology solutions, like Descartes' Routing, Mobile & Telematics suite, to drive fleet and mobile resource productivity, manage driver performance and comply with government regulations.
"The Electronic Logging Device (ELD) mandate in the US has increased adoption of telematics solutions in both the US and Canada over the last few years. The US ELD mandate comes into full effect in December 2019, and Canada's ELD mandate is expected to follow," said Vince Arone, General Manager of PinPoint and now VP, Mobile Telematics Solutions at Descartes. "We see a great opportunity to meet the growing needs of our customers by combining our team and expertise with Descartes' wider Routing, Mobile and Telematics business."
Descartes' Routing, Mobile and Telematics suite is an integrated platform of technology solutions for managing delivery operations. The suite unites optimized delivery route planning, dispatching and GPS tracking, mobile applications, vehicle telematics, fleet/driver compliance and performance analytics. PinPoint adds depth and breadth to the suite by enhancing Descartes' ability to collect and leverage real-time information.
"Gathering real-time information about the location of vehicles continues to be a critical factor for our customers in making strategic decisions about how to deploy their assets," said Edward J. Ryan, Descartes' CEO. "By combining forces with PinPoint, we add scale and domain expertise to our solutions, and strengthen our relationships with key partners such as Geotab and Skybitz. I'd like to take this opportunity to welcome the PinPoint employees, customers and partners into the Descartes ecosystem."
PinPoint is headquartered in Toronto, Ontario. Descartes acquired PinPoint for up-front consideration of $CAD 15.0 million (approximately $USD 11.5 million at August 22, 2018), plus potential performance-based consideration. The up-front consideration was satisfied with $CAD 13.0 million in cash from Descartes' existing acquisition line of credit, and Descartes common shares valued at $CAD 2.0 million. The share consideration is subject to a 24 month hold period. The maximum amount payable under the all-cash performance-based earn-out is $CAD 3.0 million, based on PinPoint achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2020 and fiscal 2021.
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