WiseTech Eyes $3.5 billion e2open Deal, But Investors Remain Cautious

Highlights:

• WiseTech Global Ltd (ASX: WTC) is considering a $3.5 billion acquisition of US-listed supply chain platform e2open, marking one of its largest potential deals.
   
• Citi warns of investor scepticism due to WiseTech's ongoing product delays, executive vacancies, and revenue growth concerns.
   
• The deal is expected to be earnings accretive, but carries risks related to integration, margin dilution, and channel conflicts.

WiseTech Global Considers Major Acquisition Amid Internal Challenges

WiseTech Global Ltd (ASX: WTC) has confirmed it is in discussions to acquire US-based supply chain software firm e2open in a potential deal worth up to $3.5 billion, which would mark one of the largest acquisitions in the company’s history. At the time of writing, WiseTech shares were trading 0.6% higher, signalling cautious optimism among investors.

The move, initially reported by Street Talk, was later acknowledged by WiseTech in an official statement. While Citi analysts recognise the strategic value of the acquisition—especially for WiseTech’s ambitions in container transport optimisation—they caution that the timing of the deal could spark investor scepticism.

Citi Flags Investor Concerns Over Timing

According to a note from Citi, the acquisition comes as WiseTech faces several internal challenges, including product delivery delays, slower FY26 revenue growth projections, and ongoing executive turnover. The company is currently searching for both a new CEO and CFO, raising questions about execution capability during a transformative acquisition.

Despite the timing, Citi maintains a “buy” rating on the stock and notes that the deal would likely be earnings accretive, expanding WiseTech’s reach to beneficial cargo owners. However, analysts also warned of potential channel conflicts, integration risks, and margin dilution that could accompany the merger.

Strategic Expansion or Risky Bet?

The proposed acquisition is seen as a bold step to solidify WiseTech’s position in global logistics software. While the strategic alignment appears sound, the company must now convince investors that it can deliver results amid operational headwinds and leadership uncertainty.

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