Descartes buys e-commerce inventory management platform for $40M

Finale Inventory acquisition complements Descartes’ other e-commerce investments

(Photo: FreightWaves/Jim Allen)

Supply chain software provider Descartes Systems Group announced it has acquired cloud-based inventory management company Finale Inventory. The deal includes an upfront payment of approximately $40 million and a potential post-acquisition earnout of up to $15 million.

California-based Finale Inventory helps e-commerce companies manage inventory levels across multiple sales and fulfillment channels. The company provides visibility to merchants, allowing them to better scale their operations and avoid inaccurate restocking. Its platform interfaces directly with users, providing them with end-to-end automation of key functions like shipping and accounting.

“Finale expands the depth of our ecommerce solution suite by addressing a critical inflection point for growing ecommerce sellers,” said Mikel Richardson, general manager of e-commerce solutions at Descartes, in a Monday news release. “As inventory complexity and risk of overselling increase, Finale provides the control and visibility merchants need to grow with confidence.”

Descartes (NASDAQ: DSGX) continues to expand its network through acquisition.

Earlier in the year, the Ontario, Canada- and Atlanta-based global supply chain SaaS provider acquired 3GTMS, a provider of cloud-based transportation management solutions, for approximately $115 million. That deal was aimed at expanding Descartes’ capabilities in optimizing domestic truckload, less-than-truckload and parcel shipments.

According to Descartes’ CEO, Ed Ryan, the acquisition of Finale complements the company’s other e-commerce investments focused on inventory, warehousing and shipping management.

“Together with Descartes Sellercloud, Finale furthers our mission to support ecommerce businesses through all phases of their growth, from a single product startup to a global, multi-channel enterprise,” Ryan said. “We’re thrilled to welcome Finale’s customers, partners and team of domain experts into the Descartes family.”

The acquisition was funded with cash on hand. An earnout of up to $15 million is tied to revenue-based targets and would be paid in fiscal years 2027 and 2028.

More FreightWaves articles by Todd Maiden:

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.