The Dutch company will acquire the freight management unit of the French container shipping line that is already a major stakeholder in Ceva as well as one of its strategic partners, the announcement said. CMA CGM first acquired a majority stake in Ceva earlier this year during its $1.3 billion initial public offering, a deal that included plans for the two companies to collaborate on new logistics offerings.
At the time, the businesses announced plans to offer a consolidated, streamlined solution for companies to book and manage their logistics services.
Later on, CMA CGM further increased its ownership in Ceva following previous failed acquisition attempts of Ceva from other players in the market, according to Supply Chain Quarterly reports.
“The industrial cooperation will make it possible to accelerate [Ceva Logistics’] require transformation and to make it a more profitable and efficient leader in logistics for the benefit of its clients, its employees and its shareholders,” said CMA CGM chief executive officer Rodolphe Saadé in a statement. “It reconfirms SMA CGM as the reference shareholder as well as its long-term partner.”
Following the acquisition Ceva will focus on its reorganization and redevelopment strategy, including IT and digital transformation initiatives, in addition to enabling joint customers to have access to a wider range of services. The companies did not disclose financial details of the acquisition.
In other logistics M&A news, reports surfaced earlier this year that Uber Freight was previously considering an acquisition of U.S. freight logistics firm Load Delivered Logistics, though the deal fell through.
Last year ShipRush, a shipping technology firm, was acquired by Descartes Systems Group for $14 million to expand its ability to provide logistics services to small- and medium-sized enterprises.