Wisetech Global Limited’s Stock Climbed Up on ASX After the announcement on the Strategic Acquisition with SmartFreight

  • Oct 17, 2018 AEDT
  • Team Kalkine
Wisetech Global Limited’s Stock Climbed Up on ASX After the announcement on the Strategic Acquisition with SmartFreight

WiseTech Global Limited’s (ASX: WTC) stock climbed up 1.429% on October 17, 2018 after an announcement on the strategic acquisition with IFS Global Holdings (‘SmartFreight’). As per the release, SmartFreight is the leader in providing parcel and LTL (Less than Truckload) shipping software company. The headquarters of SmartFreight is in Sydney, Australia which is the provider of multi-carrier shipping software solutions to customers across Australia, Asia, Ireland, New Zealand, South Africa, and the United Kingdom. Furthermore, SmartFreight processes approximately 50 million parcels in the domestic market.

The importance of acquiring SmartFreight into the WiseTech group is that it will accelerate in the company’s global expansion of company’s next-generation CargoWise One e-commerce offering in order to fulfill the e-commerce requirements of international and domestic customers. Moreover, the pilot testing is in progress with a major air-freight forwarder which is expected to launch soon.

The acquisition comprises the cost of $20.0 million immediately. Further, an amount worth ~$35 million needs to be paid based on the earn-out potential in regard to business and product integration, transitions of the customer and performance of the revenue made in FY20.  Further, SmartFreight is anticipated to be consolidated into WiseTech Global accounts from November 2018. 

SmartFreight, under the leadership of Managing Director, Ken Aitken, will continue to work with the partners of the companies and deliver innovative parcel shipping solutions to delivery providers worldwide. The 8000 logistic providers across the world who utilizes the integrated supply chain execution solutions of WiseTech can now be accessed by SmartFreight as well.

With the continued strong organic growth of the company for the year ended 30 June 2018, there is a significant growth in the revenue of the company. The revenue in the FY18 increased by 44% to $221.6 million as compared to prior year. The operating profit of the company also increased by 41% representing $58.4 million. NPAT stood at $40.8 Mn, displaying ~27% growth on Y-o-Y basis. As a result, EPS got increased by 28% in FY18 over the prior year. There is a cash inflow of $74.175 million from the operating activities. The company has acquired a business, purchased property, plant, and equipment and also made payment for the intangible asset which resulted in the net cash outflow of $143.033 million. The net cash which was generated net cash inflow through financing activities worth $88.840 million. On the whole, there was an increase in the net cash and cash equivalent of $19.962 million. At the end of the period, the net cash and cash equivalent to the company came in at $121.824 million. The company currently has total assets worth $537.226 million and total liabilities worth $185.071 million. This indicates that the company has a potential to clear its long-term obligations. The current asset of the company is $160.779 million and total current liabilities worth $79.570 million. This indicates that the company has a potential to clear its short-term obligations. The market price of the share is A$17.75 (AEST 4 pm) with the market capitalization of circa A$ 5.27 billion and PE ratio of 125.9x. As per the chart, the moving average convergence divergence line is moving below the signal line indicating the price to be bearish in nature.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK