WiseTech Global acquired Blume Global for US$414 million

On 17 February 2023, WiseTech Global Limited (ASX: WTC) announced that it had acquired Blume Global, a prominent intermodal rail solutions provider, for US$414 million. Blume has a substantial presence in North America, providing customers with a central platform to execute and track rail transport, with six of the seven Class 1 US railroads utilizing its services.

Blume is a high-growth recurring revenue business, anticipates generating revenues of approximately US$65 million to US$70 million in FY24, with yearly growth of 45% to 55%. Prior to operational synergies, Blume anticipates an EBITDA margin of around 10% in FY24. WiseTech plans to finance the purchase with a combination of US$134.8 million from current cash reserves, US$155.0 million in debt from new facilities, and US$124.2 million in new WiseTech Global shares issued to vendors.

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