UK ecommerce driven supply chain company Kewill has bought US rival Aristo to kickstart competition in the European parcel delivery market.
Aristo offers shipping management software in the US that capitalises on the country’s competitive parcel carrier market by being compatible with all carriers, therefore allowing customers to conduct parcel management from a single point.
Prompted by the recent deregulation of the European parcel carrier market, Kewill sought to enhance its own shipping management software, Clipper Ship, by incorporating Aristo’s multicarrier software to develop “next generation Web shipping and receiving systems”.
The deregulation allows European customers to choose from a variety of carriers other than national providers such as Royal Mail, such as Federal Express, UPS and DHL, and this deal with Aristo will allow European customers to track parcels with the same cost savings and convenience as the US.
Bob Malley, president of Kewill Electronic Commerce, explained that Aristo’s software automatically calculates the best route for any given shipment, based on the parcel’s priority, contents and whether its delivery address is residential or commercial. It tracks both outgoing and incoming parcels and automates some data entry.
Malley said the software is suitable for both small companies and corporate, but they will have to do at least 25 shipments per day to achieve any cost saving.
Under the terms of the deal Kewill will pay £5 million in cash and issue shares worth £3.1 million. Subject to Aristo’s performance over the next two years, Kewill will pay an additional maximum of £3.5 million in cash making the total deal worth approximately £11.6 million.
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