Waterloo, Ontario, October 20, 2009 - The Descartes Systems Group Inc. ("Descartes"), a federated global network logistics solutions provider, announced today the successful closing of its previously announced bought deal public offering of 6,838,000 common shares and the underwriters' exercise-in-full of an over-allotment option to purchase an additional 1,025,700 common shares from Descartes and certain executive officers and directors of Descartes. The syndicate of underwriters was co-led by GMP Securities L.P. and CIBC World Markets Inc., and included Thomas Weisel Partners Canada Inc., Versant Partners Inc. and Paradigm Capital Inc. (collectively the "Underwriters").
Prior to markets opening today, 7,170,404 common shares were issued by Descartes to the Underwriters at a price of C$5.85 per share. The total gross proceeds from the issuance of these shares were C$41,946,863 and the net proceeds to Descartes, after the deduction of a cash commission to the Underwriters of 4.5% and the deduction of expenses relating to the offering, were C$39,309,255. The net proceeds of the offering are anticipated to be used by Descartes for general corporate purposes potential acquisitions and general working capital.
As part of the exercise of the over-allotment option, the Underwriters purchased in aggregate 693,296 common shares from certain executive officers and directors of Descartes. To satisfy such executive officers' and directors' obligations under the over-allotment option, such executive officers and directors exercised stock options to acquire in aggregate 693,296 common shares. The proceeds to Descartes from the exercise of such stock options were C$1,277,648.
The common shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.
Descartes (TSX: DSG) (NASDAQ: DSGX), is making the world a better place by enabling global organizations with logistics-intensive businesses to save money by improving the productivity and performance of their operations. Underlying Descartes' offerings is the Descartes Global Logistics Network (GLN), one of the world's most extensive multi-modal business applications networks. As a federated platform, the Descartes GLN combines with component-based 'nano' sized applications to provide messaging services between logistics trading partners, shipment management services to help manage third party carriers and private fleet management services for organizations of all sizes. Descartes' solutions and services deliver results by enabling organizations around the world to reduce administrative costs, billing cycles, fleet size, contract carrier costs, and mileage driven; improve pickup and delivery reliability; and optimize working capital through fleet visibility. Descartes' hosted, transactional and packaged solutions deliver repeatable, measurable results and fast time-to-value. Descartes customers include an estimated 1,600 ground carriers and more than 90 airlines, 30 ocean carriers, 900 freight forwarders and third-party providers of logistics services, and hundreds of manufacturers, retailers, distributors, private fleet owners and regulatory agencies. The Company has more than 450 employees and is based in Waterloo, Ontario, with operations in Atlanta, Pittsburgh, Ottawa, Montreal, Miami, Minneapolis, Washington DC, Derby, London, Stockholm, Shanghai, and Toronto.