The WiseTech Global Ltd (ASX: WTC) share price continued its strong run on Wednesday and reached a new all-time high of $13.05.
This brought its year-to-date return to a staggering 130%.
Why did its shares climb higher today?
This morning WiseTech Global announced the acquisition of leading warehouse management solutions provider Microlistics for upwards of $40 million.
The purchase cost comprises $20 million upfront with a multi-year earn-out potential of a further $20 million related to product integration and significant revenue growth to FY 2020.
According to the release, Microlistics delivered revenue of $6.8 million and EBITDA of $1.7 million in FY 2017. As a result, management does not believe the transaction will be material when it is consolidated into WiseTech Global group accounts from February 2018. The WiseTech Global financial year ends on June 30 2018.
Management believes the software will provide significant benefit to logistics providers when it is fully integrated with its CargoWise One supply chain execution platform.
