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DSGX Boosts Transportation Management With 3G Buyout: Stock to Gain?

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The Descartes Systems Group Inc. (DSGX - Free Report) recently acquired 3GTMS (3G), a prominent provider of transportation management solutions. The acquisition, valued at around $115 million, was completed using cash on hand. With this deal, Descartes aims to enhance its position as the global leader in uniting logistics-intensive businesses and further bolster its Global Logistics Network (GLN).

3G’s transportation management solutions are designed to help shippers, third-party logistics providers and freight brokers improve cost efficiency, customer satisfaction and overall logistics performance. By combining modern cloud architecture, a vast carrier network and automation-driven planning, 3G empowers businesses to streamline shipment planning, rating, consolidation and routing.

The deal highlights Descartes’ commitment to offering cutting-edge digital solutions that optimize shipment lifecycle management across multiple transportation modes. Integrating 3G’s platform is likely to strengthen its domestic over-the-road transportation capabilities, including truckload (TL), less-than-truckload (LTL) and parcel shipments. Also, the company’s expertise in freight movement across North America makes it a valuable addition to Descartes’ portfolio.

As Descartes integrates 3G’s technology into its existing platform, customers can expect continuous improvements and new features that enhance logistics operations. The initiative is likely to drive better business outcomes for the company, boosting its top-line margins and share price performance.

DSGX’s Acquisition Moves Power its Top-Line Potential

Descartes is on an acquisition spree. In the last reported quarter, DSGX revenues soared 13% year over year to $167.5 million, beating the Zacks Consensus Estimate by 0.5%. The synergies resulting from the acquisitions of MyCarrierPortal and Sellercloud acted as a tailwind. The integration of Peoplevox and Sellercloud offers a robust solution for DSGX customers, driving notable joint sales success across the United States, Europe and Australia. This had a strong impact in the quarter and continues to gain momentum heading into fiscal 2026.

In October 2024, it expanded its e-commerce portfolio by acquiring Sellercloud for about $110 million, funded by cash in hand. By integrating Sellercloud’s capabilities with its existing shipping, fulfillment and warehouse management solutions, Descartes now provides a unique and comprehensive solution that enables businesses to manage the entire lifecycle of domestic and cross-border e-commerce shipments, distinguishing itself in the marketplace.

In September 2024, Descartes expanded its portfolio by acquiring Assure Assist, Inc., operating as MyCarrierPortal. The initiative is aimed at bolstering DSGX’s capabilities in fraud prevention and compliance within the trucking industry. In June 2024, it acquired England-based BoxTop Technologies Limited for $13 million in an all-cash transaction. The buyout will integrate BoxTop solutions with its GLN platform. The initiative is likely to broaden the network’s reach and capabilities, providing customers with even greater efficiency and visibility across their supply chains.

However, uncertainty prevailing over global macroeconomic conditions, geopolitical turmoil and volatile supply-chain challenges remain woes.

DSGX’s Zacks Rank & Stock Price Performance

DSGX currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 15.5% in the past year against the Zacks Computer-Software industry's decline of 2.2%. Shares went up 2.5% in trading and closed at $105.54 on March 25, 2025.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. (IDCC - Free Report) , Ubiquiti Inc. (UI - Free Report) and Arista Networks, Inc. (ANET - Free Report) . IDCC & UI presently sport a Zacks Rank #1 (Strong Buy), while ANET carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

Arista delivered a trailing four-quarter average earnings surprise of 12.87%. It has a long-term growth expectation of 14.41%. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.

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