Descartes Expands Ecommerce Customs Solutions Through NetCHB Integration

Descartes Systems Group has completed a strategic acquisition of NetCHB, bolstering its capabilities in automated customs declaration services for cross-border ecommerce shipments. The move represents a significant step in the company’s efforts to deepen its Global Logistics Network (GLN) with specialized trade compliance tools.

Deal Structure and Financial Terms

The transaction was finalized for an initial cash outlay of $40 million, with additional contingent payments tied to performance milestones. NetCHB could earn up to $60 million in performance-based compensation over a two-year period following the acquisition, contingent upon achieving specified revenue objectives. The Arizona-based firm brings over 15 years of operational expertise to the logistics infrastructure provider.

NetCHB’s Market Position and Technology

NetCHB operates a cloud-native platform that serves approximately 700 customs brokers across the United States. The technology enables these intermediaries to connect directly with the US Customs and Border Protection (CBP) Automated Broker Interface (ABI), facilitating both standard fiscal declarations and security filings at scale.

Beyond traditional customs workflows, the company has developed specialized capabilities around Section 321 Type 86 shipment classifications—a regulatory category introduced by CBP in 2019 for low-value ecommerce goods moving across borders. This initiative allows compliant processing of high-volume consumer shipments with reduced customs clearance delays.

Strategic Rationale

According to Edward J. Ryan, Chief Executive Officer of Descartes, the acquisition reflects the company’s broader investment strategy as logistics and supply chain operations undergo rapid digital transformation. “NetCHB brings domain expertise in customs regulations, proven technology infrastructure, and an established customer base that can immediately benefit from expanded services within our Global Logistics Network,” Ryan noted.

Ken Wood, Executive Vice President of Product Management, emphasized the operational advantages: “The platform’s automation capabilities for high-volume ecommerce declarations enable brokers and forwarders to accelerate shipment movement through customs checkpoints. This translates to faster consumer delivery cycles while maintaining full regulatory compliance—a critical competitive factor for large-scale ecommerce customs intermediaries.”

Market Opportunity

The acquisition positions Descartes to capture growing demand among ecommerce logistics providers seeking integrated solutions. As Section 321 Type 86 regulatory frameworks evolve, the combined entity can offer customs brokers and freight forwarders end-to-end shipment lifecycle management tools, from declaration to final delivery.