Descartes Systems acquires Finale Inventory for $40M upfront consideration

Descartes Systems (DSGX) has acquired Finale Inventory, a U.S.-based provider of cloud-based inventory management solutions designed to support ecommerce businesses across their growth lifecycle. Finale Inventory helps growing ecommerce sellers keep stock levels accurate across multiple ecommerce sales and fulfillment channels. With better visibility and control, customers can effectively scale while avoiding overselling, backorders, erroneous restocking, and negative customer experiences. The solution also offers deep integration and real-time data synchronization with prevalent ecommerce marketplaces, shipping solutions, and accounting systems, to enable end-to-end automation of key operational processes. Finale is headquartered in California. Descartes acquired Finale for up-front consideration of approximately $40M satisfied with cash on hand, plus potential performance-based consideration. The maximum amount payable under the all-cash performance-based earn-out is $15M, based on the combined business achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2027 and fiscal 2028.