WiseTech acquires FRDM ai for up to US$24.3M

• WiseTech Global has entered a binding agreement to acquire supply chain intelligence developer FDRM.ai.
• The transaction involves US$14.3 million in earn-out payments.
• WiseTech plans to integrate FDRM.ai's capabilities to expand its VerifyWise compliance solution.

WiseTech Global (ASX:WTC) has executed an agreement to acquire supply chain risk intelligence platform FDRM.ai for up to US$24.3 million.

The deal comprises an upfront consideration of US$14.3 million.

"As WiseTech's Chief Innovation Officer, Richard White has worked closely with FDRM.ai's founder, Justin Dillon, for more than nine months to bring FDRM.ai into the WiseTech Group, accelerating our VerifyWise plans,” said WiseTech Global CEO Zubin Appoo.

The transaction is scheduled to complete on Aug. 3, subject to customary conditions precedent.

Following the announcement, the WiseTech Global share price was down at $33.39.

The company stated that the deal will combine FDRM.ai's multi-tier supplier risk scoring with existing software assets to form VerifyWise.

WiseTech noted that the platform integration aims to offer cross-sell opportunities across its network of more than 22,000 logistics providers and over 500,000 connected enterprises.