Descartes Addresses Fraud with Recent Acquisition

Supply chain software provider Descartes announced on Wednesday its acquisition of Assure Assist, operating as MyCarrierPortal (MCP). This company specializes in technology that enables brokers to accurately identify and authenticate carriers. Descartes paid $24 million upfront and has committed to an additional $6 million in earnout based on the new entity meeting specific revenue targets over the next two years.

“Carrier fraud and cargo theft remain significant challenges in the transportation sector. This acquisition represents another step toward enhancing our Know-Your-Carrier (KYC) capabilities, which are vital for improving supply chain performance and reducing fraud,” said Dan Cicerchi, general manager of transportation management at Descartes, in a press release.

Based in Atlanta, MCP assists shippers and brokers with carrier onboarding and risk monitoring. Users can set carrier requirements and evaluate carriers based on various risk and compliance metrics to ensure "legitimacy, insurance compliance, and a satisfactory safety record." Carriers selected on the platform are continuously monitored for compliance within the established risk tolerance.

Ontario-based Descartes (NASDAQ: DSGX) funded the acquisition using cash reserves.

“The integration of MCP with our Descartes MacroPoint FraudGuard tool offers a unique solution for our customers, enabling efficient carrier onboarding while enhancing visibility, compliance, and reducing fraud risk,” Cicerchi added.

This marks Descartes’ fourth acquisition of the year, following the purchase of shipment management solutions provider BoxTop Technologies for $13 million in June, trade compliance provider OCR Services in March, and customs and regulatory compliance firm Aerospace Software Developments in April. The latter two transactions amounted to a total of $150 million.

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