By Stuart Condie
SYDNEY--WiseTech Global shares are on track for their highest close in more than three months after the Australian logistics-software provider announced its largest ever acquisition.
Shares in WiseTech rose as much as 6.7% on Monday following its announcement of the US$2.1 billion acquisition of U.S.-listed e2open and its supply chain optimization platform.
Midway through the session, the stock was still up 4.9% at 104.93 Australian dollars, equivalent to US$68.16. It hasn't closed as high as that since Feb. 19, shortly before board turmoil and a revenue-guidance downgrade prompted a steep sell-off.
The acquisition makes strategic sense, providing WiseTech with a much larger revenue base and increased U.S. exposure, RBC Capital Markets analyst Garry Sherriff said.
WiseTech's 50% earnings margin far exceeds e2open's 35% but the Australian company has a strong track record of managing past short-lived dilutive changes, Sherriff wrote in a note to clients.
"Management has demonstrated their ability with historical acquisitions to remove duplicative costs and attain synergies, which should see ETWO's margins lift over time," Sherriff said.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
May 25, 2025 23:32 ET (03:32 GMT)
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