Industrial technology company Trimble is acquiring Transporeon, a German logistics software company, in an all-cash deal worth $1.98 billion. The announcement sent shares of the Colorado-based Trimble’s stock down over 7% in extended trading. With this addition, the company hopes to expand its presence in the transportation tech industry; Transporeon provides cloud-based transportation management systems to roughly 1,300 commercial and industrial companies worldwide.
Transporeon, which boasts a solid footprint in Europe, is projected to hit revenue in excess of $200 million in 2023, making for 25% year-over-year growth. The vast majority of its revenue is generated from subscriptions or recurring transactions, and the demand for digital software systems is growing in the commercial transportation market, according to Rob Painter, president and CEO of Trimble.
The Trimble Connect platform supports more than 20 million users, and it provides software and hardware solutions to customers across many industries — including agriculture, construction, geospatial, government, and more — in 185 countries.