Integration Risks Loom as WiseTech Expands with $2.1B e2open Buy
WiseTech Global reported a robust FY25 with 14% revenue growth and a 17% rise in net profit, underpinned by a transformative $2.1 billion acquisition of e2open and strategic leadership changes.
- FY25 revenue up 14% to $778.7 million USD
- Net profit after tax increased 17% to $200.7 million USD
- Completed $2.1 billion acquisition of e2open, funded by $3 billion syndicated debt
- R&D investment rose to $263.8 million with over 1,200 product enhancements delivered
- New CEO Zubin Appoo appointed; FY26 guidance projects up to 85% revenue growth
Strong Financial Performance and Currency Shift
WiseTech Global Limited closed FY25 with a solid financial performance, reporting revenue of $778.7 million USD, a 14% increase over the prior year. Net profit after tax rose 17% to $200.7 million USD, while underlying net profit after tax surged 30% to $241.8 million USD. Notably, the company transitioned its presentation currency from Australian dollars to US dollars, aligning its financial reporting with its global logistics customer base and reducing currency volatility.
Strategic Acquisition of e2open
In a landmark move, WiseTech completed the acquisition of e2open, a leading SaaS provider in the global logistics value chain, for $2.1 billion USD. This acquisition was fully funded through a new $3 billion syndicated debt facility, underscoring WiseTech’s commitment to expanding its technology ecosystem and market reach. e2open’s integration is expected to enhance WiseTech’s container visibility capabilities significantly, adding nearly 40 million more containers to its platform.
Innovation and Product Development
WiseTech continues to invest heavily in research and development, with FY25 R&D expenditure reaching $263.8 million USD, representing 34% of total revenue. The company delivered 1,226 new product enhancements during the year, contributing to over 5,700 enhancements in the past five years. This relentless innovation supports WiseTech’s vision to be the operating system for global trade and logistics, driving productivity and compliance for its 17,000 customers worldwide.
Leadership and Governance Updates
Leadership changes marked FY25, with Zubin Appoo appointed as Chief Executive Officer in July 2025, succeeding a period of transition following founder Richard White’s move to Executive Chair. The Board also saw new appointments, including Roberto Castaneda and Sandra Hook, enhancing governance as WiseTech enters its next growth phase. The company’s remuneration framework continues to align executive incentives with long-term shareholder value, emphasizing equity-based rewards and performance-linked incentives.
Outlook and Market Position
Looking ahead, WiseTech projects FY26 revenue growth between 79% and 85%, driven largely by the e2open acquisition, with EBITDA expected to grow 44% to 53%. The company anticipates an EBITDA margin of 40% to 41%, reflecting operational leverage despite integration costs. Risks remain around acquisition integration, regulatory compliance, and technology system resilience, but WiseTech’s diversified customer base and strong recurring revenue model provide a robust foundation for sustained growth.
Bottom Line?
WiseTech’s bold acquisition and innovation investments set the stage for accelerated growth, but integration execution will be key to unlocking full value.
Questions in the middle?
- How will WiseTech integrate e2open’s platform and realize anticipated synergies?
- What impact will the new CEO have on strategic priorities and execution?
- How will global economic and trade fluctuations affect WiseTech’s growth trajectory?
