The Australian Competition and Consumer Commission (ACCC) has compelled WiseTech Global to sell Expedient Software following its $3.2 billion acquisition of e2open. The watchdog feared the deal would lead to increased prices and diminished service quality for customers. WiseTech, a global logistics software provider, offers solutions designed to manage and streamline supply chains. Its flagship platform, CargoWise, enables businesses to execute complex logistics transactions.
WiseTech agreed last week to sell Expedient Software, a former competitor to CargoWise, after discussions with the ACCC. ACCC Chairwoman Gina Cass-Gottlieb noted that WiseTech proceeded with the acquisition before the ACCC could complete its review, despite being aware of significant concerns.
The ACCC’s investigation, initiated post-acquisition, revealed substantial apprehension among logistics software users. These users worried that the acquisition could result in inflated prices or reduced service quality. To address these concerns, the ACCC will approve the sale of Expedient to a purchaser capable of operating the business as a viable competitor to WiseTech.
Cass-Gottlieb stated that WiseTech already holds substantial market power in the logistics software sector. The ACCC believes the acquisition eliminated competition between CargoWise and Expedient, significantly reducing options for Australian customers.
