International shipping platform Freightos has announced the acquisition of Shipsta, a prominent freight tender procurement platform.
The acquisition is regarded as a strategic move aimed at enhancing its digital freight procurement capabilities.
The deal, finalised on 19 August, will significantly broaden Freightos' offerings by integrating Shipsta's advanced tender management system with its existing spot pricing and booking solutions.
The acquisition has been described as a pivotal milestone for Freightos, aligning with its vision of creating a comprehensive digital platform for freight procurement.
By combining both spot and contract rates, Freightos aims to address the complex needs of importers, exporters, and freight forwarders, who often require solutions beyond simple spot freight bookings.
The deal will be financed through a mix of cash and equity, involving a cash payment of approximately €4.5 million and the issuance of around 640 000 Freightos shares to a key Shipsta shareholder.
Shipsta is anticipated to contribute about $800 000 to Freightos' revenue in the last four months of 2024, with projections for 2025 estimating revenue contributions between $4 million and $5 million.
Shipsta, headquartered in Luxembourg, has established a reputation for streamlining the tender management and procurement processes across various transport modes, including air, ocean, road, and rail.
Its technology supports numerous multinational companies across diverse sectors such as retail, pharmaceuticals, and automotive.
The integration of Shipsta's platform is expected to enhance Freightos' service offerings and operational efficiencies.
Christian Wilhelm, the managing director and founder of Shipsta, along with co-founder Stefan Maratzki, will continue to lead the platform's development and innovation within the Freightos ecosystem.
Wilhelm expressed enthusiasm about the merger, highlighting the shared mission of digitising global freight processes and enhancing service delivery for customers.
Freightos CEO Zvi Schreiber noted that this acquisition not only strengthens the company's market position but also accelerates its path towards achieving positive adjusted EBITDA by the end of 2026.
The combined capabilities are expected to set new industry standards in freight procurement, driving innovation and expanding market reach.
This acquisition underscores the growing trend of digital transformation in the logistics sector, as companies seek to enhance efficiency and agility in their supply chain operations in the wake of recent global disruptions.
