WiseTech in Seoul move

Aussie software company gains foothold in Korean market

WISETECH Global has acquired South Korean customs solutions company Ready Korea in a deal worth a potential $20 million.

WiseTech said Ready Korea – headquartered in Seoul – would provide it with trade expertise in a region that is currently the world’s eighth largest export market and tenth largest import market.

The Ready Korea purchase includes a $13.2 million payment up front, with up to $7 million more depending upon performance.

WiseTech, which in October fended off attacks from a Beijing-based short seller over its acquisition strategy, said yesterday its latest buy was strategic.

WiseTech expects the deal to add a non-material $7.3 million to its annual revenue and $1.6 million in earnings.

WiseTech shares slipped 0.74 per cent to $25.46 by 1300 AEDT yesterday, but have still gained 50 per cent in 2019.

WiseTech was founded in 1994 by Richard White (right) and he has been CEO and an executive director since then.

The company is a global developer of cloud-based software solutions for the international and domestic logistics industries

WiseTech has its headquarters in Sydney.

Ready Korea facilitates the lodgement of electronic transactions to the Korean Customs

Service, including customs brokerage and refunds, and Free Trade Agreement verifications, along with bonded warehouse management. Its customers include FedEx, Bayer Korea, Korea 3M Corporation, Samsung, Siemens, and Johnson & Johnson.

The Ready Korea transaction follows a number of other logistics solutions acquisitions across South and North America and Europe that will be integrated into WiseTech’s

CargoWise One platform.

Ready Korea is expected to be consolidated into WiseTech Global accounts from December 31 and its current managing director Tom Kim will continue to lead the operation.

WiseTech last month reaffirmed its full-year guidance of 26 per cent to 32 per cent revenue growth, to between $440 million and $460 million, and earnings growth of between 34 to 42 per cent to $145 million to $153 million.