project44 announces acquisition of Denmark-based GateHouse Logistics

Earlier today, Chicago-based project44, a technology services provider offering standardized, secure Web service API (application programming interfaces) integrations enabling 3PLs and shippers to connect with carriers in real time, announced it has acquired Nørresundby, Denmark-based GateHouse Logistics, a logistics technology provider focusing on securely sharing data across the supply chain, with an emphasis on visibility of inbound and outbound logistics. 

Financial terms of the deal were not disclosed, and project44 said that all GateHouse Logistics employees will become employees of project44. 

Jett McCandless, CEO and founder of project44, said there were various drivers for project44 to acquire GateHouse.

“We heard our customers articulate their need for a global visibility platform that supports all modes and automates their entire global transportation value chain,” he said. “That is why we made this acquisition, to meet this need by enabling them to manage not only all their North American shipments, but also their European shipments from a single-pane, across all shipping modes.” 

project44’s Advanced Visibility Platform focuses on more than tracking, in the form of end-to-end visibility from the start of the shipping process to delivery (and beyond), as well as automation of key transportation processes, and also eliminates gaps in real-time visibility and powers users with high-quality and trustworthy Parcel, Final Mile, Less-Than-Truckload (LTL), Volume LTL, Full Truckload, Refrigerated, Rail and Ocean data.

And with GateHouse Logistics now part of project44, McCandless explained that project44 now has the first truly global visibility platform that will enable shippers and third-party logistics firms to be better able to manage shipment life-cycles, improve shipping speed and predictability and reduce manual processes for their international shipments. 

“By delivering them a strong foundation for driving digital transformation of their global supply chains, we are empowering them to deliver exceptional Amazon-like experiences to their customers around the world,” he said.

As for what made GateHouse Logistics an attractive acquisition target for project44, McCandless noted how things have evolved on the supply chain visibility front over the years.

Roughly eight years ago, he said there were only a few visibility platform vendors in the market, he said, but a recent report issued by Gartner, entitled “The Market Guide for Real-Time Visibility Providers,” indicates that the visibility market has grown to include dozens of players, most of whom are active in either North America or Europe but have difficulty expanding across both regions due to divergent industry characteristics, technology options, and carrier needs.

“This acquisition forms the first truly global visibility platform,” he said. “GateHouse Logistics has been the clear EU leader in the visibility space since they were founded in 1992. That was even more clear after we signed an exclusive partnership with them in October and started collaborating closely with them.” 

“One reason they stood out is that they offer the largest European capacity provider network,” he said. “GateHouse Logistics also has the largest and most GDPR compliant network of telematics systems across Europe. Another reason they stood out is that they share our goal of high-fidelity data, global expansion, deep logistics knowledge and a ‘customer first’ mentality. In the end, we realized that by combining their deep engineering and technical expertise with the marketing and commercial sales engine of project44, we could create a first of its kind global transportation visibility company. At that point, the decision to join forces was easy.” 

Two key things that GateHouse Logistics brought to the table, cited by McCandless, were the largest European capacity provider network and relationships with some of the largest shippers and carriers in Europe. And he added that different regions have different transportation industry characteristics, carrier organization (core asset based vs. subcontracted fleets) and are at different stages in terms of shipping technology adoption.

“GateHouse Logistics possesses a deep understanding of Europe’s industry characteristics, carrier organization and technology adoption,” he said. “This knowledge enables us to offer a truly global visibility platform that supports all modes and automates shippers and third-party logistics firms’ entire global transportation value chain.”  

As for key shipper benefits created through this acquisition, McCandless pointed to two key factors:

• by creating the largest visibility platform across North America and Europe, this deal will enable shippers and third-party logistics providers to manage their global supply chains from a single-pane, across all shipping modes; and
• with this truly global visibility platform, shippers and third-party logistics firms will benefit from increased operational efficiencies, lower costs and improved customer satisfaction globally

“Our mission is perfectly aligned with project44,” said Jesper Bennike, former GateHouse Logistics CEO and current project44 executive vice president of business development, in a statement. “By coming together to create the largest visibility platform across North America and Europe, our customers will be able to capture the deep business value that a single global provider can enable, while gaining access to the high-fidelity data analytics, automation and predictability of the project44 Advanced Visibility Platform.”