DSGX - Descartes Systems: Adding To Its M&A Track Record
2024-03-31 09:33:13 ET
Summary
- The Descartes Systems Group has announced another bolt-on deal, acquiring OCR Services for $90 million in cash.
- Descartes operates under a "Total Growth" model, combining organic growth and bolt-on dealmaking.
- The company generates small revenues in relation to its shipments but is extremely profitable, with strong and consistent revenue growth.
Shares of The Descartes Systems Group ( DSGX ) have risen towards the higher end of the trading range again, as the company announced another bolt-on deal, as is typical M&A practice for the business. The latest deal is a bit more expensive than average, although that Descartes has over time grown the business further, with the pro forma implications not being clear yet....
Descartes Systems: Adding To Its M&A Track Record