WiseTech buys Editrade to deepen Latin America reach

WiseTech Global has agreed to acquire Chilean customs management software provider Editrade, expanding its customs coverage in Chile, Ecuador, Panama and Mexico as the Australian logistics software developer pushes further into Latin America.

The deal adds to WiseTech's existing customs products within CargoWise, its logistics execution platform used by freight forwarders and logistics providers. WiseTech's native customs platform now covers about 80% of global manufactured trade flows, including countries where products are in production and development.

Founded in 1995 and headquartered in Santiago, Editrade supplies customs management software and related services to customs agencies and foreign-trade companies in Chile and Ecuador, and also provides services in Panama and Mexico. WiseTech is buying the business from private shareholders.

The acquisition is WiseTech's fourth in the past four months, underlining its continued use of M&A to add local regulatory coverage and deepen its footprint across customs regimes. Financial terms were not disclosed.

Customs focus

Customs clearance remains a key operational step for freight forwarders and importers. It requires submitting data and documents that comply with local rules and tariff regimes, which can vary by country and change frequently.

Chile and Ecuador trade with partners across North America, Latin America, Asia and Europe. That mix increases the number of regulatory frameworks exporters and importers must navigate. WiseTech is positioning its approach around expanding the number of countries covered within a single software environment.

Within Editrade's customer base, customs agents and beneficial cargo owners use an integrated suite of tools to automate transactions across customs processes. Editrade says its software supports the management of import and export formalities as part of broader trade documentation workflows.

Vlad Bilanovsky, WiseTech Global's chief execution officer, said the acquisition adds local expertise across multiple markets and expands WiseTech's customs product set.

"We are excited to welcome Editrade S.A. to the WiseTech group as they bring such deep and trusted local expertise in customs compliance and processing across several Latin American markets: Chile, Ecuador, Panama and Mexico. Delivering solutions across multiple countries is testament to the knowledge and skill of Editrade S.A. team. This foothold investment will become part of the CargoWise global customs solution, bringing us even closer to our target of covering 90% of global manufactured trade flows, enabling large global freight forwarders to efficiently manage their end-to-end shipment process all within CargoWise."

Integration plans

Editrade will be integrated into the WiseTech group and will remain under the leadership of chief executive Juan Enrique Ortuzar Elton. The company will continue to deliver its software directly to customers and will offer other CargoWise products over time.

The plan follows WiseTech's pattern of keeping acquired businesses under existing management while connecting their products to the broader CargoWise suite. WiseTech has used acquisitions for several years to add customs coverage and trade compliance features across regions.

Ortuzar Elton said Editrade has focused on improving logistics documentation and management through automation, and that its next phase will be supported by WiseTech's scale.

"We're very proud of our work to develop solutions that optimize management of the logistics chain and documentation, helping our clients to be more efficient, compliant and productive. Now we get to build on that valuable legacy and grow our business as part of WiseTech's global team. We have a shared vision to use automation to simplify customs processing and compliance for more efficient international trade for our customers. This move also brings a range of new career opportunities for our people - we are looking forward to our journey together," he said.

WiseTech sells CargoWise to logistics companies in many markets, and says its customers include thousands of logistics firms across 195 countries, including many large third-party logistics providers and major freight forwarders.

With Editrade added, WiseTech plans to expand customs-regime coverage across Latin America and continue progress towards its target of covering 90% of global manufactured trade flows.