Serial Acquirers Market Update: Descartes and Well Health Charge Full Steam Ahead with Strategic Acquisitions
Descartes Moves to Acquire Another U.S.-based Company and Well Health Exercises Call Rights
Descartes Expands Reach in the Transportation Market After Acquiring U.S.-Based 3G
Descartes Systems Group, a Canadian serial acquirer specializing in software solutions for use in logistics and supply chains, recently acquired U.S.-based 3G, a transportation management platform for $164.4 million CAD. This strategic acquisition aims to expand Descartes’s North American reach by incorporating a network of API-integrated less-than-truckload (LTL) carriers.
According to Descartes, 3G’s platform is utilized by shipping partners, third-party logistics providers, and freight brokers to enhance the efficiency of domestic shipments by road. Andrew Roszko, Chief Commercial Officer at Descartes, believes that 3G’s solution offers effective domestic transportation management capabilities across various delivery modes such as truckload, less-than-truckload, and parcel.
This acquisition underscores Descartes's ongoing strategy of acquiring U.S.-based companies within the freight, transportation, and supply chain management sectors—a strategy that has led to strong financial results. Unlike many Canadian companies being acquired by American firms in recent years, Descartes distinguishes itself as a Canadian company actively acquiring American businesses. In 2024 alone, Descartes made four acquisitions—including two other U.S.-based companies: MyCarrierPortal and Sellercloud.
Well Health Expands Capabilities Through Strategic Investments
Well Health, a Vancouver-based digital healthcare company, is moving to gain a majority controlling interest in its long-time strategic partner, Healwell AI. This is being achieved through the exercising of its call rights, which were established after Well Health’s investment in Healwell in October 2023. Healwell develops AI tools to help healthcare providers detect rare, complex, and chronic diseases.
Simultaneously, Healwell is completing its acquisition of Orion Health, a New Zealand-based healthcare data management company, which it agreed to purchase for $165 million CAD last December. Together, these deals are set to significantly enhance Healwell’s capabilities. Hamed Shahbazi, chairman of Healwell and founder/CEO of Well Health, noted that acquiring Orion will attract significant large enterprise customers and open new channels for distributing Healwell’s AI products and services.
Well Health anticipates that over the next 12 months, Healwell will contribute approximately $160 million in revenue with positive adjusted EBITDA to its consolidated financial statements. Meanwhile, the Orion acquisition is expected to generate more than $100 million CAD in revenue and strong double-digit adjusted EBITDA margins.
With Well Health recently reporting record annual revenue and free cash flow to shareholders, I’m looking forward to see how these acquisitions will shape the future of the company.
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