WiseTech (ASX:WTC) Share Price Rises On South Korean Acquisition

The WiseTech Global (ASX: WTC) share price is up after the technology company announced another acquisition.

WiseTech was founded in 1994 by Richard White to provide software to the logistics sector. Since then it has grown to become a global provider of logistics software, claiming to service 19 of the top 20 logistics companies globally. WiseTech makes money by charging its customers on a ‘per use’ basis rather than as a subscription model. Meaning, WiseTech directly benefits as its customers grow their businesses.

What Has WiseTech Acquired Now?

The logistics technology business announced that it has acquired South Korean business, Ready Korea. It provides customs, bonded warehouse and trade compliance solutions.

Ready Korea is headquartered in Seoul and it facilitates the lodgement of electronic transactions to the Korean Customs Service, including customs brokerage and refunds, and free trade agreements.

The South Korean business also provides a trade administration offering for generating and submitting electronic the import and export documentation.

Customers of Ready Korea include FedEx, Bayer Korea, Korea 3M Corporation, Samsung, Siemens, Johnson & Johnson as well as many others.

The acquisition price is $13.2 million upfront with a further multi-year earn out potential of up to $7 million relating to business and product integration, customs development, customer conversion and financial performance.

In the 2018 calendar year, it generated annual revenue of approximately $7.3 million and EBITDA (click here to learn what EBITDA means) of $1.6 million.

WiseTech Global Founder and CEO Richard White said: “As the 8th largest export market and 10th largest import market in the world, South Korea plays a key role in Asia’s, and the world’s, supply chains.

“Bringing Ready Korea’s regional customs and trade management expertise into the group now expands our innovation and development capabilities in this important region as we continue to build-out our global customers footprint. 

This is a further step in strengthening our international reach deeper across Asia and together we will develop even more productive and valuable cross-border logistics solutions for our regional and global customers.”

Ready Korea will remain under the leadership of Managing Director Tom Kim but will be integrated into WiseTech and shift to CargoWise over time.

WiseTech has been attacked by short sellers for its acquisition strategy, but it reminded investors that this meets its “clearly stated strategy of accelerating long term organic growth through targeted, valuable geographic foothold and technology adjacency acquisitions.”

Online Value Investing Course - FREE!

How do you value an investment? Do you really understand what you’re investing in and why?

We’ve just updated our FREE business valuation course and made it available to investors like you. Complete with models, templates and tools, simply click here to access the course.

It’s completely free!

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

WordPress Theme built by Shufflehound.


Please note, this website provides news and factual information only. It is not a source of financial or investment advice of any kind.Before acting on any of the information you should always speak with a licensed and trusted financial adviser who is authorized to give you financial advice. Check ASIC’s professional registers ( for a list of licensed financial advisers and organisations.Never invest in a fund/ETF or buy a financial product (insurance, brokerage account, etc.) before you read the Product Disclosure Statement (PDS). The PDS document is your source of truth and can be found on the company’s website. Read it before you act.Finally, always remember that the future is uncertain and investing in anything is risky. Past performance is a poor guide for future returns. For more information, read our Terms & Conditions.