Mr. Edward Ryan reports

DESCARTES ACQUIRES IDELIC

The Descartes Systems Group Inc. has acquired Idelic, a leading provider of artificial-intelligence-powered driver safety and performance management solutions.

Idelic's safety intelligence platform unifies day-to-day safety management activities such as training, monitoring, reporting and coaching into a single solution. With an AI analytics workflow designed to measurably impact driver behaviour, fleets can pro-actively identify and reduce driving risk by leveraging the platform's unique data set of more than 40 billion miles of telemetry and over 400,000 accident records. The company collects real-time, highly detailed event-level data through a connected network of more than 80 telematics, risk management and regulatory system integrations. Built on years of machine learning applied to predictive accident models across more than 150 fleets, Idelic's AI capabilities are field proven in predicting driver risk and optimizing safety training interventions.

"Productivity and safety are equally critical for fleet operators," said James Wee, general manager of fleet management at Descartes. "This acquisition adds critical data to our Global Logistics Network (GLN) and enhances Descartes's final-mile footprint by adding highly advanced fleet safety capabilities and deep domain expertise. Idelic's AI-powered predictive safety intelligence functionality, when combined with Descartes's industry leading routing planning and execution technology, enables us to deliver a complete and cutting-edge fleet performance management solution that uniquely incorporates driver behaviour and safety signals into our robust operational data set."

"The need for trusted, real-time fleet and operational data is becoming increasingly critical as customers advance their AI strategies," said Edward J. Ryan, Descartes's chief executive officer. "By combining Idelic's predictive safety intelligence and unique, critical data with Descartes's GLN, we're strengthening the data foundation that powers smarter fleet performance decisions and safer, more efficient operations."

Idelic is headquartered in Pittsburgh, Penn. Descartes acquired Idelic for upfront consideration of approximately $28-million (U.S.) satisfied with cash on hand, plus potential performance-based consideration. The maximum amount payable under the all-cash performance-based earnout is $12-million (U.S.), based on the combined business achieving revenue-based targets in each of the first two years postacquisition. Any earnout is expected to be paid in fiscal 2028 and fiscal 2029.

About The Descartes Systems Group Inc.

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.

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