WiseTech agrees to sell Expedient under ACCC undertaking
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The news: WiseTech Global has agreed to a voluntary undertaking with the Australian Competition and Consumer Commission (ACCC) to sell its logistics software platform Expedient Software, as part of its $3.3 billion buyout of New York-listed e2open.
The context: WiseTech said Expedient formed a "small and immaterial" component of the business operations of Texas-based e2open, which WiseTech acquired in August. WiseTech said Expedient was not part of the investment case for that acquisition.
Expedient employs less than 30 staff and generates annual revenue of less than 0.4% of WiseTech's FY26 revenue guidance, the company noted.
However, the divestment is expected to result in a one-time, non-cash derecognition of goodwill of between USD5 million ($7.5 million) and USD20 million.
What they said: "Whilst WiseTech maintains that its ownership of Expedient does not lessen competition in any Australian market, we have voluntarily agreed to enter an enforceable undertaking with the ACCC to sell this business, to address the ACCC's competition concerns," WiseTech CEO Zubin Appoo said.
"This voluntary agreement does not impact the significant benefits of our e2open acquisition. The rationale for our acquisition was to expand WiseTech's reach into global trade management and supply chain management.
"E2open remains a significant step toward achieving this objective as well as our broader vision to be the operating system for global trade and logistics."
The source: ASX
