Cargotec to acquire terminal operator systems provider
Jan. 31, 2011
by World Grain Staff
HELSINKI, FINLAND — Cargotec announced on Jan. 31 that it has entered into an agreement to acquire terminal operator systems (TOS) provider Navis from Zebra Technologies Corporation. Cargotec said the transaction value is approximately $190 million. Cargotec said that by acquiring the leading TOS provider Navis, Cargotec will further strengthen its ability to provide total solutions for its terminal customers.
"This acquisition supports Cargotec’s strategy to focus on customers and invest in attractive customer segments. Navis solutions are a core component of a terminal operator's business. By adding Navis to our portfolio, we will be able to offer total solutions for terminals. We see excellent opportunities for growth and innovation," said Mikael Mäkinen, president and chief executive officer, Cargotec.
"Cargotec provides us insight into world-class equipment that is used in all of our customer segments. Joining forces creates exciting possibilities to improve terminal operations," says Bill Walsh, senior vice-president and general manager of Navis.
Navis' flexible and scalable TOS software is the leading system globally in marine terminals, rail yard operations and distribution centres. Navis systems are designed to help customers coordinate and automate the movement of containers and equipment in terminal and yard environments as well as enable customers to manage the operations of a single terminal or multiple terminals in different geographic locations from a central location.
Marine container terminals are Navis' core market. Navis solutions are used in over 50 countries. Navis was founded in 1988 and has its headquarters in Oakland, California, U.S. Today, the company has more than 300 employees of which the majority is located in the U.S. and India. Its sales are expected to be around $70 million in 2011, with around 40% recurring sales.
Navis will continue its business with its customers as an independent part of Cargotec irrespective of equipment supplier. Navis' reporting will be consolidated into Cargotec's financial reporting once the transaction has been completed. The acquisition is subject to regulatory approvals from competition authorities, which are expected to be received during the first quarter of 2011.