Trimble to acquire logistics software company Transporeon for €1.9bn

Trimble, an American industrial technology company, will acquire Transporeon, a cloud-based logistics software company, from Hg, a software and services investor and current majority shareholder in the business, for €1.88 billion in cash.

The proposed acquisition of Transporeon is expected to increase Trimble‘s sustainability offering and footprint in Europe as well as total addressable market (TAM) by around $5 billion.

Transporeon is a scaled cloud-based transportation management software platform that offers modular applications for a worldwide network of 145,000 carriers and logistics service providers and 1,400 shippers and load recipients to manage around €48 billion of freight spend and more than 25 million transports annually.

With operations in Europe, the Americas, and Asia, Transporeon enables customers to improve competitiveness, cut costs, lower waste, and solve complex freight issues.

Rob Painter — Trimble CEO said: “Transporeon is a leading market player with a large TAM, profitable growth and a platform focused on connected supply chain infrastructure, all of which are highly aligned with Trimble’s Connect & Scale strategy”

“We look forward to working together to enhance and expand on the company’s significant growth trajectory, and to offer enhanced TMS platform solutions to Transporeon customers in Europe and to Trimble customers in the North American market.”

Transporeon is expected to generate revenue of around €190 million in 2023 on a full-year basis, marking around 25% yearly growth.

Post-closing, Transporeon business will become part of Trimble’s Transportation division.

Stephan Sieber — Transporeon CEO said: “This transaction will give us the runway to take what we have created to the next level by uniting our powerful European platform with Trimble’s North American carrier-focused platform.”

The all-cash transaction is expected to be funded through a combination of cash on hand and new debt.

Subject to customary conditions, Trimble has secured €1.88 billion in committed financing.

Bank of America is acting as transaction financing provider to Trimble.

Anticipated to be complete in the first half of 2023, the transaction is subject to regulatory approvals and customary closing conditions.