Descartes Systems Group paid the big bucks for ShipRush so users don’t have to.
The Canadian logistics software company paid $14 million to acquire the Seattle shipping company that helps small and medium-sized companies and retailers manage their shipping operations. Whereas bigger retailers like Amazon can afford to take a hit on shipping, the little guys need to keep costs down.
ShipRush works with them to streamline the supply chain and cut transportation costs by automating essential yet time-consuming functions: importing orders, comparing carrier rates, printing shipping labels for major carriers, and tracking through final delivery.
The acquisition will give ShipRush customers access to logistics management, freight and international shipping orders that were not previously available.
As for Descartes, the Toronto-area company saw an opportunity to integrate e-commerce systems and shipping systems to save customers money and to help retailers with last-mile delivery.
“By joining the Descartes community, ShipRush’s SMB customers will be able to expand the complexity and scope of their e-commerce operations using a single platform where their entire logistics network can exist, regardless of the range of transportation modes or the variety of trading partners in their supply chain,” ShipRush founder Rafael Zimberoff said in a statement.
Rafael and Anya Zimberoff founded ShipRush in 1998 under the entity Z-Firm LLC. Z-Firm goes back even further to 1992, when it launched as a tech consulting firm before shifting focus to shipping in the latter 1990s. ShipRush got its big break when Intuit started using its technology solutions in QuickBooks in 2003. Its Seattle headquarters employs 12 people.
Descartes, by comparison, employs 1,200 people, so the partnership could potentially catapult ShipRush into the big league.
The acquisition comes with an additional $3 million in incentives.