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Highlights

  • WiseTech shares climb 3% after confirming acquisition talks with e2open for $3.5 billion.
  • Acquisition is seen as part of WiseTech’s strategy to expand its product development and reach.
  • Goldman Sachs maintains a buy rating with a price target of AUD128.00 for WiseTech.

Shares of WiseTech Global Ltd (ASX: WTC) surged 3% in Friday’s trading, reaching AUD97.11, following confirmation that the logistics software provider is in talks to acquire U.S.-based supply chain platform provider e2open (NYSE: ETWO). The proposed deal is valued at an estimated $3.5 billion.

The acquisition aligns with WiseTech’s ongoing strategy to accelerate its product development and expand its ecosystem. The company’s management stated that the discussions are part of a broader program of proactive acquisitions, which includes both strategic and smaller tuck-in deals. Although the talks are ongoing, WiseTech warned that there is no certainty the deal will proceed or what the terms of any final agreement might be.

e2open, founded in 2000, offers a connected supply chain platform that facilitates the movement of goods and services. The company has a vast network with approximately 5,800 clients, including major players such as C.H. Robinson and DSV European Road. Despite some recent revenue challenges, e2open has retained ambitious long-term growth targets, focusing on double-digit subscription revenue growth.

Goldman Sachs responded positively to the news, noting that an acquisition of e2open would significantly enhance WiseTech’s data assets, customer relationships, and earnings potential. The deal could provide access to valuable logistics data, including 500,000 connected enterprises and 18 billion supply chain transactions.

Goldman Sachs also reaffirmed its buy rating for WiseTech, setting a price target of $128.00. Investors appear optimistic about the potential acquisition, with shares seeing a noticeable uptick as the market absorbs the news. However, with no final agreement in place, the outcome of the acquisition talks remains uncertain.