News: WTC UPDATE 1-Australia's WiseTech amps up U.S. logistics footprint with $414 mln deal

(Adds deal details)

Feb 17 (Reuters) - Australia's WiseTech Global Ltd (WTC) said on Friday it will acquire U.S.-based intermodal rail solutions provider Blume Global for $414 million, as the logistics software maker looks to expand its footprint.

With the acquisition of Blume, which operates North America, a major logistics region, WiseTech will extend its presence in landside logistics with the addition of rail transport.

"This transaction demonstrates WiseTech's continued investment in its CargoWise ecosystem, improving visibility and process efficiencies end-to-end across the supply chain for our customers," said Richard White, WiseTech chief executive.

WiseTech said it expects to fund the transaction through a combination of $134.8 million from existing cash reserves, about $155.0 million of debt from new facilities and the rest via new WiseTech Global shares issued to the vendors.

On a standalone basis, Blume expects to achieve 2024 EBITDA margins of approximately 10% and be cash flow breakeven by the end of 2024, according to WiseTech.

Blume manages intermodal containers and chassis on behalf of six of the seven Class 1 U.S. railroads, ocean carriers and other intermodal equipment providers.