WiseTech snaps up Korean company in $20m deal despite short seller criticism
Global logistics software group WiseTech Global has bought Korean customs, bonded warehouse and trade compliance solutions provider Ready Korea for $20 million.
The deal comes after WiseTech was recently attacked by short seller J Capital for buying smaller companies like Ready Korea. J Capital alleged WiseTech overstated its profits by $116 million since listing on the ASX in 2016 and that its acquisitions strategy was failing.
The Ready Korea deal follows other recent acquisitions by WiseTech in Australasia, Europe, South America, North America, the Middle East and Asia.
The Australian tech giant said in a statement the deal was in line with its “clearly stated strategy” of accelerating long-term organic growth through “targeted, valuable acquisitions”.
WiseTech is paying $13.2 million upfront for Ready Korea with a further multi-year earn-out potential of up to $7 million.
WiseTech has a market capital of $8.16 billion and said the transaction, while of strategic value, was not material to the group.
Ready Korea is headquartered in Seoul and provides cross-border compliance solutions for the lodgement of electronic transactions to the Korean Customs Service, including customs brokerage and refunds and Free Trade Agreement verifications, along with bonded warehouse management.
Its customers include FedEx, Bayer Korea, Korea 3M Corporation, Samsung, Siemens and Johnson & Johnson.
WiseTech founder and chief executive Richard White said as the world’s eighth largest export market and tenth largest import market, South Korea played a key role in Asia’s and the world’s supply chains.
“Bringing Ready Korea’s regional customs and trade management expertise into the group now expands our innovation and development capabilities in this important region as we continue to build-out our global customs footprint,” he said in a statement.
“This is a further step in strengthening our international reach deeper across Asia and together we will develop even more productive and valuable cross- border logistics solutions for our regional and global customers.”
Ready Korea managing director, Tom Kim, said the company was happy to become part of WiseTech and would work with it to improve logistics.
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Source: Thanks smh.com