The WiseTech Global Ltd (ASX: WTC) share price is up 4% to $6.91 in trade today after the logistics software and parcel delivery business announced it is to buy a small Brazil-based software startup for $11.8 million.
The acquisition is named Bysoft and it provides "automated customs and freight forwarding software and solutions" to around 750 corporations across Brazil and South America.
Wisetech is to pay around 3.8x Bysoft's current annual revenues with the acquisition target reportedly operating on just a "breakeven" net profit basis. Evidently with annual revenues of just $3.4 million this company's annual turnover is not much more than your local café and as such the deal is "not material" to the WiseTech Group.
What it does represent is a potential shortcut into the South American market for WiseTech as its founder attempts to execute on a pipeline of acquisition opportunities in "key target regions of Europe, Asia and Latin America.
WiseTech shares have been on a tear since the company presented to a bevvy of institutional investors at an early May investor conference hosted by Macquarie Group Ltd (ASX: MQG).
Others worth a look in the mid-cap tech space include cloud-accounting business XERO FPO NZ (ASX: XRO), or the more established provider of fintech to the asset management industry in Iress Ltd (ASX: IRE).
