The Descartes Systems Group (Nasdaq: DSGX) (TSX: DSG) has acquired Drivin, a leading provider of last-mile delivery management solutions across Latin America, in a deal valued at up to US $35 million.
Under the terms of the agreement, Descartes acquired Drivin for upfront consideration of approximately US $30 million, satisfied with cash on hand. An additional performance-based earn-out of up to US $5 million may be paid in fiscal year 2029, contingent upon the combined business achieving defined revenue targets during the first two years following the transaction’s close.
Deepening AI-Driven Last-Mile Capabilities
Drivin’s platform equips distributors, retailers, consumer goods companies, and logistics service providers with advanced route optimisation, dispatch management, and real-time execution visibility. The solution is underpinned by machine learning and agentic artificial intelligence capabilities, and has achieved wide adoption in high-density urban environments across Latin America — markets where logistical complexity and consumer service expectations are rising in tandem.
For Descartes, the acquisition adds a substantial volume of last-mile logistics data and operational metadata generated from real-world delivery execution, assets the company intends to leverage for AI training, predictive analytics, and optimisation across its broader Global Logistics Network.
“Drivin brings a proven and highly adaptable solution for managing complex last mile operations,” said James Wee, General Manager of Fleet Performance Management solutions at Descartes. “It also has a significant volume of last mile logistics data and operational metadata generated from real-world delivery execution across Latin America to improve AI training and execution, predictive analytics, and optimization. The combination enhances our ability to serve distribution-intensive businesses around the world as they modernise and scale to meet customer expectations for faster, more reliable delivery experiences amidst growing urban congestion and complexity.”
A Strategic Gateway into Latin America
Edward J. Ryan, Chief Executive Officer of Descartes, framed the deal as a deliberate move into one of the logistics technology sector’s most dynamic growth regions.
“Latin America represents a growth market for Descartes and for the broader logistics technology industry,” Ryan said. “Drivin complements our existing fleet performance management offering, expands our reach in Latin America, and adds experienced leadership and deep domain expertise to help accelerate innovation, adoption and customer success across the Descartes Global Logistics Network.”
Drivin is headquartered in Santiago, Chile, and the acquisition brings with it a team of specialists with direct experience navigating the regulatory, infrastructural, and operational complexities of Latin American markets.
Strategic Significance
The transaction reinforces Descartes’ pattern of disciplined, capability-focused acquisitions aimed at strengthening its position in global logistics technology. By integrating Drivin’s machine learning-enhanced dispatch and routing platform, Descartes gains both a technological asset and a regional market presence that would be difficult to replicate organically.
Latin America’s logistics technology market has attracted increased investor attention in recent years as e-commerce penetration accelerates and urban delivery density rises across major cities including São Paulo, Buenos Aires, Bogotá, and Lima. The region’s structural characteristics — fragmented road networks, informal settlement density, and variable address data quality — have historically demanded specialised routing intelligence, an area in which Drivin has established significant expertise.
For corporate customers operating distribution networks in the region, the integration of Drivin’s capabilities within the broader Descartes ecosystem signals access to more comprehensive global supply chain management tools from a single platform.
Descartes powers more responsive, efficient, secure, and sustainable international and domestic supply chains by uniting logistics-intensive businesses on its Global Logistics Network (GLN). Shippers, carriers, and logistics service providers connect and collaborate on the GLN, leveraging technology, data, and AI to manage last-mile deliveries, domestic and international shipments, transportation rating and payment, global trade research, customs compliance, and a variety of regulatory processes. Headquartered in Waterloo, Ontario, Canada, Descartes operates across more than 160 countries.
Drivin is a leading provider of last-mile delivery management solutions serving logistics-intensive businesses across Latin America. The company’s cloud-based platform delivers advanced route optimization, dispatch management, and real-time delivery execution visibility, enhanced by machine learning and agentic AI capabilities. Drivin serves distributors, retailers, consumer goods companies, and logistics service providers operating in high-density urban environments, where precision, speed, and adaptability are critical to competitive performance. Drivin is headquartered in Santiago, Chile. Following the acquisition by Descartes, Drivin’s operations will continue to serve existing and future customers as part of the Descartes Global Logistics Network.
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