Descartes acquires Telargo

June 16, 2011
Descartes Systems Group, provider of logistics technology, has acquired privately held Telargo Inc.

Descartes Systems Group, provider of logistics technology, has acquired privately held Telargo Inc.

Telargo is a software-as-a-service (SaaS) supplier of marketing resource management (MRM) telematics systems that enable its clients to monitor and manage mobile assets (ie, vehicles, workforce, equipment, and cargo) and help fleet owners comply with domestic transportation regulations. Its systems gather information about vehicles, such as location, engine use, and braking information, and the drivers of those vehicles, such as hours of service (HOS). This data can then be used for real-time decisionmaking, dynamic estimated time of arrival notifications for delivery recipients, and operational analysis. Telargo’s telematics systems also help fleet owners comply with new driver HOS and fuel tax reporting (IFTA) regulations.

“Descartes is a leader in MRM solutions with a long history of providing delivery route planning and mobile solutions for vehicles,” said Ed Ryan, chief commercial officer at Descartes. “By adding Telargo’s telematics solutions to the Descartes routing, mobile, and telematics suite, we can now offer customers a pre-integrated, end-to-end MRM solution that combines hardware and software and is delivered over the Descartes Global Logistics Network.”

The Descartes routing, mobile, and telematics suite supports the end-to-end processes fleet operators use to:

•Create plans that best serve customers while minimizing costs.

•Ensure that the plans are being executed in the field and address changes in real-time.

•Instantly capture and distribute customer data from the field.

•Track the performance of vehicles and related equipment.

•Comply with government reporting and working mandates.

Headquartered in New Jersey, Telargo also has offices in Ljubljana, Slovenia, and has approximately 35 employees. To complete the acquisition, net of working capital received, Descartes paid about US $9.6 million in cash and incurred certain transaction expenses.

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