FourKites significantly expands European presence with acquisition of NIC-place

Chicago-based FourKites, a provider of real-time tracking and visibility solutions across transportation modes and digital platforms, said today it has acquired Hanover, Germany-based NIC GmbH (NIC-place), a provider of supply chain visibility services.

Financial terms of the transaction were not disclosed.

FourKites officials said that with NIC-place in the fold, it is positioned to create the largest European-based multimodal carrier network, serving global shippers with what it called the most comprehensive end-to-end global supply chain visibility platform. And they also added that it will help to spur on the adoption of secure real-time visibility solutions specifically designed for carriers, while shortening the time to value for shippers with complex, multimodal carrier networks.

FourKites said that NIC-place’s solutions are geared towards transport companies, carriers, and logistics services providers. NIC-place’s Data Control Center (DCC) gives carriers a flexible and secure way enabling carriers to share supply chain data with customers, as well as complete control of their business, network, and data.

NIC-place was established in 2016. FourKites noted that thousands of companies leverage NIC-place to track and monitor millions of shipments annually. The company will continue to operate under the NIC-place moniker and its offices in Germany.

Mathew Elenjickal, CEO of FourKites, providedLMGroup News Editor Jeff Berman with details on this major acquisition. Their conversation follows below.

LM:What drove the need for FourKites to acquire NIC-place? How long had this been planned/in the works?

Elenjickal:FourKites’ acquisition of NIC adds a vast network of carriers, forwarders and subcontractors, as well as the largest rail network in Europe. The deal triples FourKites’ existing European carrier base and creates the largest multi-modal carrier network in Europe.

The NIC-place solution is designed specifically for carriers and is unlike any other in the market, with the ability to easily onboard subcontractors, track temperature and emissions, and integrate with other solutions to provide a true control-tower view of data across all technology platforms.

While we don’t want to get into specifics of this deal, I will say that we are always methodical in our approach to M&A opportunities. We take our time—often years—getting to know the product, team and vision to ensure there is a culture fit and that the product fits within our broader vision or end-to-end supply chain that goes beyond logistics. Our primary goal is to find deals that add value to our network and customers—and NIC will do exactly that.

LM:What are the main benefits of this acquisition for FourKites’ customers?

The NIC-place solution offers several major benefits:

• The largest multimodal carrier network in Europe. The NIC-place solution was built for carriers by people with extensive expertise in the market, with the goal of addressing carriers’ needs, including seamless onboarding of sub-contractors. Bringing NIC-place gives FourKites customers greater network coverage — including thousands of integrated carriers, telematics providers and the most comprehensive rail coverage in Europe — and creates the largest multimodal carrier network in the region;
• Data privacy and security. NIC-place’s Data Control Center (DCC) is subject to some of the most stringent data privacy regulations regarding GDPR. These laws allow carriers to have complete control over their data and with whom they share it;
• Comprehensive and optimized rail coverage. With the largest rail network in Europe, shippers who lease or manage their rail assets gain end-to-end visibility, helping them identify and implement opportunities to improve utilization — an increasingly critical capability as many companies face ongoing ocean challenges; and
• 温度控制和高价值的货物。NIC-place is the market-leader for tracking temperature-controlled and high-value transports such as pharmaceuticals, fresh and frozen products, and electronic equipment. The largest network of European refrigerated logistics companies leverage the NIC-place platform to better serve their customers and ensure quality delivery of their products

Additionally, FourKites will retain the NIC team, significantly expanding FourKites’ local resources for its growing customer base.

LM:What does this provide to FourKites that was needed or missing?

Elenjickal:The fragmented carrier market in Europe can make it challenging for shippers to have true end-to-end visibility. Existing platforms offer a one-size-fits-all solution for carriers and shippers globally, but that won’t work in Europe due to the highly fragmented nature of small trucking companies and stringent data privacy rules and regulations. As such, Europe needs a fundamentally differentiated approach to delivering visibility to the market. The NIC-place solution addresses the unique challenges of the market by easily onboarding subcontractors and facilitating controlled data sharing with third parties such as shippers and visibility providers.

FourKites’ many multinational customers will benefit from greater supply chain visibility in Europe. By acquiring NIC, FourKites is now the only provider to provide end-to-end tracking across every mode on a single platform in Europe.

LM:Did FourKites/NIC-place have a previous business relationship? If so, what was it/how did it work?

Elenjickal:Prior to the acquisition, we partnered with NIC to provide FourKites customers with visibility data from carriers who use the NIC-place platform and have authorized NIC-place to share it with shippers. Moving forward, FourKites will explore additional strategic integration opportunities while balancing the data privacy requirements NIC-place has today. However, both offerings will continue to exist independently.