E2open makes second acquisition in less than a year, bringing Logistyx Technologies into the fold

Another major logistics acquisition was announced last week, with Austin, Texas-based E2open, a network-based provider of cloud-based, mission-critical, end-to-end supply chain management platform services, saying it has bought Rolling Meadows, Ill.-based Logistyx Technologies, a provider of global parcel and e-commerce shipping and fulfillment technology services, for $185 million.

This marks E2open’s second acquisition in the last year, following its September 2021 purchase of BluJay, a provider of cloud-based, logistics execution platform services.

Established in 2017, Logistyx Technologies has a carrier library comprised of more than 550 carriers, including UPS, FedEx, DHL, and USPS, which it said empowers shippers to achieve on-time delivery on a global basis, as well as improve profits per shipment. The company has 1,500 years of combined experience and 800 global customers. The company’s main focus is on helping large enterprise shippers take on complex distribution situations and same- and next-day delivery expectations.

E2open officials said that with Logistyx in the fold it enhances the company’s global footprint for multi-carrier e-commerce shipping management offerings that provide various shipping capabilities that are needed to meet and respond and react to its customers’ needs.

“We are excited to welcome Logistyx Technologies’ team, clients, and capabilities to E2open,” said Michael Farlekas, chief executive officer at E2open, in a statement. “The demand for e-commerce shipping capabilities continues to grow as companies look for more flexible and cost-effective ways to deliver products to consumers. This combination makes E2open the most comprehensive and integrated shipping solution provider, which covers all shipping modes including ocean, air, road, rail, and parcel, and is powered by a global network of carriers and logistics service providers. Logistyx is complementary to E2open’s existing platform, enabling E2open’s world-class clients to orchestrate their supply chains from demand to fulfilment, to supply.”

And Geoffrey Finlay, Logistyx Technologies CEO, said that the Logistyx team is thrilled to combine with E2open to enable more companies to ship smarter and benefit from the largest supply chain platform and network available.

“We provide our customers, which include top retailers, manufacturers and logistics providers, the automation, visibility and flexibility needed to simplify global fulfillment and compete in an omnichannel world—all within a one-stop, connected platform,” he said.

Pawan Joshi, Executive Vice President, Products & Strategy at E2open, told LM that there were a few factors that led to the decision for E2open to acquire Logistyx, including the rise of e-commerce and omnichannel fulfillment around the globe in response to consumer demands continuing to drive companies toward shipping capabilities that provide the flexibility to deliver products in the most efficient, cost-effective manner.

“At the same time, many companies are looking for a single technology provider with a platform that has everything they need to operate their supply chain from end to end,” he explained. “With the Logistyx combination, E2open accelerates e-commerce shipping capabilities and expands our global footprint for the benefit of our clients.”

As for the steps needed to be taken to integrate Logistyx into E2open, Joshi said that like all E2open acquisitions, the capabilities will be integrated into E2open's transportation and logistics capabilities in its platform.

“We integrate relatively quickly,” he said. “Once complete, the Harmony [the company’s supply chain platform] user interface will provide a seamless experience and connection to the E2open network of ecosystems,” he said.

When asked about the main benefits of this deal for E2open’s customers, Joshi observed how supply chains are increasingly more global and distribution channels more complex.

“Companies need parcel and e-commerce shipping capabilities that extend across countries, while easing the laborious effort of the certification process. This combination accelerates E2open's ability to provide both at greater scale, across the broadest global footprint, so our clients can focus on their business,” he said. “Specifically, the combination adds a carrier library of over 550 global carrier integrations including UPS, FedEx, DHL and USPS, to our leading network, and the carrier certification process is automatically managed by the solution to keep clients in compliance. Additionally, shippers can more easily compare and review spot rate options, which is critical in a capacity-constrained environment. Shippers benefit from having one comprehensive and integrated shipping solution provider, while other clients benefit from access to the same within a single platform. Overall, our clients have expanded capabilities to scale and respond to evolving and growing market needs.”

What’s more, Joshi said that Logistyx's capabilities enhance E2open's capabilities, global footprint, and integrated carrier network to become the most comprehensive integrated shipping solution provider covering all transportation modes.

“The solution also manages the carrier certification process for an expanded number of integrated carriers around the world, to keep global clients in compliance, while making it easier to compare and review spot rate options—the addition augments the U.S. focused capabilities and talent that [is] E2open,” he said. “This is crucial in today’s supply chain environment as there is limited capacity. In addition, by joining with Logistyx, E2open’s client roster will also expand to include Logistyx’s strong global enterprise clients, which include many of the world’s leading retailers, manufacturers, and carriers.”