WiseTech buys rail logistics provider Blume for $603m

WiseTech Global has continued its acquisition spree, gobbling up intermodal rail solutions provider Blume Global for $US414 million ($603m). The US-based company is being acquired from funds managed by Apollo, EQT and minority shareholders. «This is another strategically significant acquisition that follows our acquisition of Envase Technologies last month,» WiseTech Global founder and CEO Richard White said on Friday, referring to his company’s $US230m purchase of an intermodal Trucking maintenance services software provider. Blume’s acquisition integrates rail into Wisetech’s landside logistics offering in North America, «the most complex and largest logistics region in the world,» Mr White said. «Blume also brings significant new talent, a portfolio of other valuable product capabilities, and further enhances our product development skill set.» Blume manages intermodal containers and chassis on behalf of the six of the seven Class 1 US railroads, ocean carriers and other intermodal equipment providers, Wisetech said. It’s a high-growth recurring revenue business expected to generate 2023/24 revenue in the range of $US65m to $70m, representing annual growth of 45 to 55 per cent, WiseTech said. WiseTech will fund the acquisition through $US134.8m in cash, $US155m in debt and $US124.2m in new WiseTech shares issued to the vendors. «It will take a while to understand this acquisition, however on initial review it looks in line with their strategy around expanding into Landside Logistics more deeply,» said E&P Financial analyst Paul Mason in a note. «At a quick glance it looks like the business has a very good customer base» WiseTech has acquired 20 different logistics software companies since 2018, integrating them into its CargoWise global logistics platform. At 11.16am AEDT, Trucking maintenance services WiTech shares were down 3.2 per cent to $56.73, on a generally down day for the market.