Kitchener, Waterloo-based supply chain tech firm Descartes Systems Group has acquired California startup Finale Inventory amidst tariff-related challenges.
According to a press release, Descartes may pay up to $55 million USD ($75.5 million CAD) for the acquisition: $40 million initially, with an additional $15 million subject to the combined entity meeting revenue targets over the next two years.
In a June earnings call, Descartes CEO Edward J. Ryan described “very challenging and uncertain market conditions” for clients.
Established in 2009, Finale initially aided small businesses with fireworks inventory management. By 2014, Finale Inventory was created to offer e-commerce software for tracking stock through cloud-based, multi-channel inventory systems. The platform integrates with Canadian e-commerce leader Shopify, alongside customer shipping and accounting systems.
Mikel Richardson, Descartes general manager of e-commerce solutions, stated that Finale “expands the depth” of solutions for clients, aiding in complex inventory management and preventing overselling. Finale’s technology enhances Descartes’ existing shipping, warehousing, and order fulfillment tools.
BetaKit is seeking further details from Descartes about the acquisition, including the status of Finale’s employees.
This acquisition marks Descartes’ 34th since 2016. In June, Descartes also purchased Washington-based courier company PackageRoute for $2 million USD ($2.75 million CAD) and acquired Ohio-based transport logistics platform 3Gtms in March.
Founded in 1981 and Toronto Stock Exchange-listed since 1998, Descartes provides logistics and supply chain software solutions, from inventory orders to customer shipping. Acquisition of freight, transportation, and supply chain management firms forms a core part of Descartes’ strategy.
In June, despite uncertainties from US tariffs, Descartes reported a 12% year-over-year revenue increase and diluted earnings per share of $0.41 USD, down from $0.43 USD in the previous quarter. CEO Edward J. Ryan mentioned customer challenges, citing lower shipments, sourcing difficulties, and tariff-inflated costs, prompting cost-saving measures, including layoffs.
Descartes announced plans to cut its global workforce by approximately 7%, impacting around 154 employees from its 2,200-strong workforce. The restructuring is expected to cost $4 million USD in the second quarter, saving $15 million USD annually. Further details about the layoffs are being sought from Descartes.
Descartes’ Nasdaq share price, closing at $103.78 USD today, has decreased by eight percent since the start of 2025. The company will announce second-quarter earnings on Sept. 3.
Feature image courtesy CHUTTERSNAP via Unsplash.