Route4Me, a Fort Lee, New Jersey-based logistics technology company, is looking for its first acquisitions to improve its tech offering, said CEO and founder Dan Khasis.
The company is looking in Russia, Belarus and Ukraine, and in Argentina and Panama, where there is high-quality developer talent, said Khasis. Targets can have up to USD 5m in revenue, Khasis said. The acquisitions are intended to refine its platform capabilities and increase its mobile presence. Khasis said the company welcomes advisory approaches with targets that meet its criteria.
Route4me’s top three markets are the US, Canada, and Australia, although Khasis said Route4Me has a significant presence in the UK as well. The business is aiming to increase its market presence overseas to reach 100,000 active paying customer in three years.
Route4Me is seeking to acquire tech providers around telematics, or tracking devices placed on vehicles that can track speed and movement; mobile user adoption of logistics software, as well as technology around logistics for industrial engineering and supply-chain optimization. It’s also interested in creators of new algorithms that could help shippers improve operations, such as how to pack a truck more efficiently without compromising driver safety, Khasis said.
Khasis said that Route4Me already has a patent-pending technology for communication between different types of telematics devices, or equipment used to monitor driving conditions on vehicles. The same principle is used in developing autonomous driving, Khasis explained.
Route4Me provides navigation and route-optimization software used by small businesses such as delivery companies, as well as larger enterprises. Khasis said the company serves some 25,000 small-and-medium-sized businesses as well as some larger enterprises and retail brands like 1-800-Flowers and Honda [NYSE: HMC].
Route4Me’s platform is cloud-based and functions as a marketplace of different applications. Businesses enter the service for a flat fee and pay monthly based on their specific services. Rout4Me’s offerings include vendor management, logistic analysis for deliveries to monitor shipping expenses and routing software that accounts for road conditions like traffic and weather.
Over the next three years, Route4Me aims to expand its platform into other areas of logistics beyond merchandise delivery, like patient transport and waste removal, Khasis said. Both of these could be entered via acquisition, he added.
The company is also considering launching a logistics tech incubator with cash on hand, said Khasis.
Khasis declined to disclose revenue but said the business has seen about a 50% year-on-year growth rate in sales.
The space has seen heavy consolidation and Route4Me receives inbound M&A interest. “I literally get daily solicitations from people trying to invest in us, or put us as part of a roll-up,” he said, though he declined to comment further on the approaches.
Asked about a timeline for a potential deal, he said: “We’re not going to turn down any reasonable offers,” but added that the business is focusing on sales growth for the next few years.
Route4Me was founded in 2009. The company has about 75 employees. Route4Me has been bootstrapped to date by Khasis and a partner.
by Thomas Zadvydas