WiseTech Global shares (ASX: WTC) added 4.7% today after announcing its largest-ever acquisition: the purchase of U.S.-based logistics software company E2open for $2.1 billion. The deal, at $3.30 per share in cash, is fully debt-funded from a new syndicated facility.

According to WiseTech’s ASX announcement, the acquisition is a “strategically significant change in global scale and reach,” adding adjacent markets, customers, and products that position WiseTech to create a global, multi-sided trade and logistics marketplace. The transaction is expected to be EPS accretive within the first year, despite around $40 million in transaction and integration costs, and will add 500,000 connected enterprises to WiseTech’s network.

The market’s reaction was positive however, analysts are divided. Some cite the increased risk from the debt-funded nature of the deal, whilst others see it as a strong step for growth and diversification. Questions also remain about WiseTech’s ability to turn around E2open, which has seen client retention issues and a falling share price prior to the deal.

The acquisition fits WiseTech’s vision to “be the operating system for global trade and logistics.” By integrating E2open’s complementary suite, WiseTech extends its CargoWise ecosystem into domestic logistics, carrier integration, and global trade. The company reaffirmed FY2025 guidance and will update its strategy and FY2026 outlook in August.

 

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While the market’s initial response is encouraging, the company must now execute a complex integration and address governance concerns. WiseTech’s shares have underperformed markets on a YTD basis, with a decline of 15.45% comparing unfavourably to the ASX 200’s growth of 1.95% over the same period. This marks a shift from the longer term trend seen in WTC. When zooming out to the 5 year, the growth in the stock has been nothing short of impressive, as evidenced by the 413% gain in price over the period.
There remains work to do in order to shift sentiment back to previous levels, but today’s move will nevertheless be welcome for bulls. With analysts divided and technical signals mixed, WiseTech’s next chapter will be closely watched for clarity on its long-term growth path.