WiseTech Global Ltd., an Australian shipping software firm, has acquired US-based cloud logistic company E2open Parent Holdings Inc. for US$2.1 billion.

The deal values E2open at US$3.30 per share, reflecting a 28% premium over its last closing price.

WiseTech plans to finance the transaction through a new debt facility, according to a release on May 26, 2025. This acquisition is the first major move taken by WiseTech founder Richard White since he became executive chairman.

E2open focuses on supply chain management software, while WiseTech provides shipping and logistics solutions.

The acquisition is expected to enhance WiseTech’s presence in the global logistics technology market.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ WiseTech’s established pattern of strategic acquisitions reaches new scale

The E2open acquisition represents a significant escalation of WiseTech’s long-established acquisition strategy, which has previously focused on smaller, specialized logistics technology providers.

Between 2017-2019 alone, WiseTech acquired numerous companies across different regions and logistics niches, including container yard management (Depot Systems), intermodal trucking (Trinium), and parcel shipping (Pierbridge)123.

WiseTech’s approach typically maintains continuity by keeping acquired companies’ leadership teams in place while integrating their specialized capabilities into WiseTech’s CargoWise platform4.

The US$2.1 billion E2open deal dwarfs previous acquisitions like Microlistics ($40 million)5, signaling WiseTech’s readiness to pursue substantially larger targets to accelerate its growth and market position.

This pattern reflects WiseTech’s systematic approach to building a comprehensive end-to-end logistics technology ecosystem through targeted acquisitions of complementary technologies.

2️⃣ Tech sector increasingly leverages debt financing for strategic acquisitions

WiseTech’s decision to fund the E2open acquisition entirely through debt reflects a broader industry trend of technology companies using debt rather than equity to finance growth.

Venture debt financing has nearly tripled from $10.6 billion in 2014 to $30.9 billion in 2023, highlighting this significant shift in how tech companies fund expansion67.

Debt financing allows tech companies to maintain control while funding significant growth initiatives and acquisitions without diluting existing shareholders’ equity8.

For companies with predictable revenue streams like WiseTech, leveraged debt provides capital efficiency while preserving cash flow for continued innovation and growth initiatives.

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