THE DESCARTES SYSTEMS GROUP INC.

By uniting the reach of the GLN with the power of
these value-added applications, our federated network
creates an ecosystem that supports and streamlines the
key functional areas facing today’s logistics managers.
Sales and Distribution
Our sales efforts are primarily directed toward two
specific customer markets: (a) transportation
companies and LSPs; and (b) MRDMs. Our sales staff
is regionally based and trained to sell across our
solutions to specific customer markets. In North
America and Europe, we promote our products
primarily through direct sales efforts aimed at existing
and potential users of our products. In the Asia Pacific,
Indian subcontinent, Ibero-America and African
regions, we focus on making our channel partners
successful. Channel partners for our other international
operations include distributors, alliance partners and
value-added resellers.
United by Design
Descartes’ ‘United By Design’ strategic alliance
program is intended to ensure complementary
hardware, software and network offerings are
interoperable with Descartes’ solutions and work
together seamlessly to solve multi-party business
problems.
‘United By Design’ is intended to create a global
ecosystem of logistics-intensive organizations working
together to standardize and automate business
processes and manage resources in motion. The
program centers on Descartes’ Open Standard
Collaborative Interfaces (Open SCIs), which provide a
wide variety of connectivity mechanisms to integrate a
broad spectrum of applications and services.
Marketing
Marketing materials are delivered through targeted
programs designed to reach our core customer groups.
These programs include trade shows and user group
conferences, partner-focused marketing programs, and
direct corporate marketing efforts.
Recent Updates
On March 19, 2010, we acquired 96.17% of the shares
of Zemblaz NV (NYSE Alternext Brussels: ALPTH,
“Porthus”), a provider of global trade management
solutions, at EUR 12.50 per share. On April 16, 2010,
we purchased the remaining 3.83% of the Porthus
shares at EUR 12.50 per share, and all outstanding
8
warrants at a price of EUR 12.33 per warrant issued
pursuant to Porthus’ 2000 warrant plan and a price of
EUR 20.76 per warrant issued pursuant to its 2001
warrant plan. In total, we paid EUR 30.0 million
(equivalent to $40.9 million at the time of the
transaction) to acquire all outstanding securities of
Porthus.
On April 19, 2010, we purchased all of the shares of
privately-held 882976 Ontario Inc., doing business as
Imanet (“Imanet”), a provider of enterprise and ondemand
technology solutions to customs brokers,
freight forwarders, exporters and self-clearing
importers. Imanet’s solutions focus on enabling
members of the international trade community to
communicate with Canada Border Services Agency
(“CBSA”). Leading customs brokers, freight
forwarders and Canadian importers manage their
shipments and interactions with CBSA using Imanet’s
solutions. To complete the acquisition, net of working
capital received, we paid CDN $5.9 million
(equivalent to $5.8 million at the time of the
transaction).
On June 16, 2010, we acquired privately-held Belgianbased
Routing International NV (“Routing
International”), a leading developer and distributor of
optimized route planning solutions. Routing
International’s flagship solution suite, WinRoute, and
dedicated consultants help enterprises of all sizes and
across industries to optimize distribution planning to
improve the productivity and performance of their
operations. To complete the acquisition, net of
working capital received, we paid approximately EUR
3.1 million (equivalent to $3.9 million at the time of
the transaction).
On December 21, 2010, we announced that the
Toronto Stock Exchange (“TSX”) had approved the
purchase by us of up to an aggregate of 4,997,322
common shares of Descartes pursuant to a normal
course issuer bid. The purchases can occur from time
to time until December 22, 2011, through the facilities
of the TSX and/or the NASDAQ Stock Market
(“NASDAQ”), if and when we consider advisable. As
of March 11, 2011 there have been no purchases made
pursuant to this normal course issuer bid.