Trimble to acquire Transporeon

Technology solutions provider Trimble Inc. is set to acquire German logistics company Transporeon, which uses a cloud-based TMS to connect carriers, logistics service providers and shippers.

Rob Painter, Trimble’s president and CEO, revealed the firm will purchase Transporeon at a cost of $1.98 billion which will be all-cash deal, with the first half expected to be closed next year.

“Digital software solutions are in high demand in the commercial transportation market and the acquisition of Transporeon represent a great opportunity. We’ve kept our eyes on this business for years and we are building a business for the long term and assets like this don’t come along often. We kept our balance sheet in a position to be able to act on opportunities like this. So when we got approached, we quickly engaged,” said the CEO.

Transporeon

Transporeon, founded in 2000, is based in Ulm, Germany. The company has about 1,000 employees and provides cloud-based solutions that enable end-to-end transport logistics management software solutions for shippers, suppliers, retailers, goods recipients and carriers. Transporeon generates around $130 million in sales annually, with core earnings around $37 million. The company has predominantly been operating in Europe, but officials said they anticipate the company’s cloud-based solutions to adapt to North America.

“Our current business is predominantly in Europe, but our platform works globally. Now to the North American market specifically, it’s highly fragmented. There is no direct like-for-like competition, at least not at that scale. What is missing for Transporeon as a stand-alone entity is a large carrier network in the United States. This is something that really differentiates us in Europe and gives us this competitive advantage when we approach new prospects and customers. I think this is one of the big opportunities that joining Trimble holds,” said Transporeon CEO Stephan Sieber.