Despite a shorting attack last month, Global logistics software group WiseTech Global has gone back on the takeover trail, buying Korean customs, bonded warehouse and trade compliance solutions provider Ready Korea for $20 million.
The deal, announced yesterday came despite claims from short seller, J Capital that WiseTech had overstated its profits and not done as well in integrating its long list of small scale takeovers around the world.
J Capital claimed the earnings overstatement was $116 million since listing on the ASX back in 2016 – a charge WiseTech and its founders have rejected.
The Ready Korea deal follows other recent acquisitions by WiseTech in Australasia, Europe, South America, North America, the Middle East and Asia.
The company said in a statement the deal was in line with the “clearly stated strategy” of accelerating long-term organic growth through “targeted, valuable acquisitions”.
WiseTech Global Founder and CEO, Richard White, said, in the statement “This is a further step in strengthening our international reach deeper across Asia and together we will develop even more productive and valuable cross- border logistics solutions for our regional and global customers.”
WiseTech is paying $13.2 million upfront for Ready Korea with a further multi-year earn-out potential of up to $7 million.
Despite that confidence, the shares eased 1.1% to $25.36.