Applied Equity announces the sale of its interests in Navegate to Radiant
Radiant Logistics, Inc., a third-party logistics and multi-modal transportation services company, today announced it has acquired Navegate, Inc. ("Navegate" or the "Company"), a Minnesota based, privately held company that combines its robust digital platform and team's expertise to manage international, cross border, and domestic freight from purchase order to final delivery. The transaction is valued at $35.0 million, subject to certain hold-back provisions and working capital adjustments as of the closing date.
Founded in 1969, Navegate is headquartered in Mendota Heights, Minnesota (Twin Cities) with offices in Addison, Illinois(Chicago) and Shanghai, China. Navegate's team of international and domestic logistics experts deliver world-class, tech-enabled logistics services, including customs brokerage, international ocean and air freight forwarding, domestic truck brokerage, drayage and transload services. These services are delivered through the Company's proprietary global trade management software platform that includes advanced purchase order and vendor management tools and has been recognized by Inbound Logistics' "Top 100 List of Information Technology Providers" over the past several years.
Based on historic financial statements provided by its management, Navegate generated approximately $5.9 million in normalized EBITDA on approximately $88.0 million in revenues for the twelve months ended September 30, 2021. Post-closing, Navegate will operate as a wholly owned subsidiary of Radiant Logistics, Inc. under the continued leadership of Joe Pelletier and Chad Bickett. In addition to continuing to grow its organic account base, Navegate will generate cross-selling opportunities for Radiant as it integrates its global trade management services with Radiant's 100+ operating locations and broader customer base.
"We are very excited to have the opportunity to join forces with Navegate," said Bohn Crain, Radiant CEO and Founder. "We have been patiently looking for the right next transaction to complement the Radiant network and we found it in Navegate. In addition to solidifying our presence in Shanghai, Navegate also strengthens our international services offering, particularly in the areas of customs brokerage, ocean forwarding and drayage services and brings with it a robust global trade management capability. These new global trade management capabilities will be made available to the entire Radiant network to provide our customers with purchase order and vendor management tools that unlock SKU-level visibility from the manufacturing floor in Asia through final delivery here in the U.S. With both the enhanced service offerings and propriety global trade management technology, we believe we will further differentiate ourselves in the marketplace and be even better positioned to provide additional support for both current and prospective customers in this capacity constrained market."
"We are excited to be joining Radiant," said Nathan Dey, Chief Executive Officer of Navegate. "We were looking for a long-term partner with that same passion for servicing the customer and a shared vision to further advance our business and provide an opportunity for growth for our employees. We are looking forward to leveraging our own strengths along with the capabilities of the Radiant network to bring additional value to our customers, while introducing the Radiant network to our purchase order and vendor management capabilities."
About Navegate Navegate, Inc. is a technology-enabled supply chain management and third-party logistics services company that combines a robust digital platform and decades of expertise to manage international, cross border, and domestic freight from purchase order to final delivery. Navegate's combination of tech-enabled services, customs brokerage expertise, and a full complement of international and domestic services significantly reduces costs and leads to better compliance and risk mitigation for its customers.
About Radiant Logistics (NYSE American: RLGT) Radiant Logistics, Inc. (www.radiantdelivers.com) is a comprehensive North American provider of third-party logistics and multimodal transportation services. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding services, truck and rail brokerage services and other value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing to a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world.