S&P/ASX 200 Index (ASX: XJO) tech share WiseTech Global Ltd (ASX: WTC) is edging into the green after falling in early trade.
The logistics software developer's shares closed yesterday trading for $56.05 each and are currently swapping hands for $56.08 apiece, 0.05% higher. That's after recovering from a drop of 0.1% at $55.50 a share this morning.
It comes after the blue-chip technology stock announced a major United States acquisition.
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What acquisition was announced?
The WiseTech share price slipped after the ASX 200 tech share reported it has acquired US-based Envase Technologies in a transaction valued at US$230 million (AU$327 million).
Envase provides transport management system software for trucking and landside logistics in North America. WiseTech is acquiring the company from private investment business Firmament and a few other sellers.
With more than 1,300 customers across North America, WiseTech expects Envase to generate some US$35 million of revenue in the 2023 calendar year. The ASX 200 tech share forecasts an earnings before interest, taxes, depreciation and amortisation (EBITDA) margin in the low to mid 20% range.
Commenting on the acquisition, WiseTech CEO Richard White said:
This is a strategically significant acquisition in landside logistics, which extends and strengthens our position in one of our six key CargoWise development priority areas, and we're extremely pleased to have the Envase team join the WiseTech Global group.
Envase CEO Larry Cuddy added:
Over the past few years, we have assembled and integrated a powerful suite of landside logistics solutions. Combined with the strength and size of WiseTech and its CargoWise platform and depth in international logistics, we have a powerful platform that we expect to further increase capacity and utilisation and drive innovation in what is an intensely complex and highly fragmented ecosystem.
WiseTech said it will fund the acquisition with 70% cash (US$161 million) and 30% new WiseTech Global shares issued to the vendors (equivalent to US$69 million).
The ASX 200 tech share expects the acquisition to be completed in February.
How has this ASX 200 tech share been tracking?
The WiseTech share price is off to a strong start in 2023, up 13%.
As you can see in the chart below, the ASX 200 tech share has gained 16% over the past 12 months.
