Once again, supply chain management B2B network provider E2open has announced yet another acquisition. The latest is transportation management systems (TMS) provider Cloud Logistics.
No financial terms were disclosed in the announcement.
Cloud Logistics is a full function TMS that boasts of a modern, intuitive user experience to simplify transportation carrier selection load tendering, communication, visibility, payment, and reporting. The Cloud based technology addresses complexities of order collaboration, communication, and international transportation management for companies of any size, which is a key to this acquisition.
Prior reported revenues were $4 million.
Industry concentration includes Agriculture and Food, Automotive, Life Sciences, Manufacturing, Third-Party Logistics (3PL).
This acquisition comes after previous unsuccessful public attempts to acquire Global Trade Management services provider Amber Road.
According to E2open executives, this acquisition is slightly different than prior ones, and both providers have been talking with each other for the past two years.
First, West Palm Beach Florida based Cloud Logistics broadens capabilities in areas of supply chain execution, which complements existing E2open platform capabilities in support of both supply chain planning, logistics and execution. The acquisition can also build on existing E2open Logistics Network capabilities, namely when network processes reach a ready-to-ship stage, Cloud Logistics TMS capabilities can be enabled among multi-model transportation modes.
Because of Cloud Logistics customer traction in top and lower tiers of supply chain networks, opportunities to incorporate cross-selling in new small and medium market segments opens-up.
Since current market penetration is currently focused in North America, E2open has the opportunity to invest in this TMS for broader multi-language and global TMS support capabilities.
E2open CEO Michael Farlekas often reiterates that scale matters in a B2B Business Network platform in relation to broad business process functionality, total users, countries supported and volumes of transactions and item categories that are being supported. That is indeed the strategy that continues to unfold from private-equity owners Insight Venture Partners. Prior actions have included:
Thus far, E2open has managed to follow-thru with overall technical and functional support integrations of all prior acquisitions.