Why WiseTech’s Share Price Increased by over 4%

The beginning of May proved promising for WiseTech Global [ASX:WTC] as share prices surged, gaining 4.08% since the stock market opened.

It seems the rise is thanks to the recent guidance upgrade. Management of WiseTech have increased its revenue for FY18 to a $220 million range.

The upgrade comes as a representation of its year to year growth.

WiseTech Global were founded in 1994 and are based in Alexandria, Australia. They specialise in cloud-based software solutions  around the world.

The increase in share price comes after WiseTech acquired three leading logistical solutions across Europe and Latin America.

WiseTech grows alongside its shares

In late April, WiseTech Global announced they will be acquiring several leading logistic providers.

WiseTech acquired PB & Assoc and Softcargo, which covers 16 countries in Latin America.

They also gained acquisition of French customer solutions, Easylog.

These acquisitions have built stable ground across Europe and Latin America for WiseTech, and promote future growth for the company.

In an announcement WiseTech CEO, Richard White, commented on the acquisitions,

‘We continue to further strengthen our global market presence by adding leading logistics solutions providers, in key trading regions across Europe, Latin America and Asia, into the WiseTech Global group. Forward and Softcargo help us fill out our footprint in Latin America, while EasyLog is key to customs in France. These solution providers have established operations, infrastructure and extensive experience, as well as strong leadership, making for a very good fit with WiseTech Global.’

White believes that Latin America is a key trading region to the business. Furthering opportunity capabilities when they acquired Bysoft, a Brazilian automated customs solutions business.

WiseTech are also taking the necessary steps to build up its European sector. Aiming at delivering a more comprehensive service for European service logistical providers.

Softcargo and Easylog will integrate with WiseTech, allowing leading solutions reported directly to customers.

WiseTech’s strategy of accelerating long-term organic growth through targeted, valuable acquisitions across new geographies and larger, globally capable agencies, seems to be paying off.

Ryan Clarkson-Ledward,

For Markets & Money

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