Canadian company Descartes Systems Group bought Minneapolis logistics company GroundCloud for $138 million in cash.

Founded in 2016, GroundCloud makes all-in-one software and developed an app for fleet tracking. Carriers use the platform to receive customer delivery orders, for navigation and tracking, and route optimization.

The app also includes features for training drivers on safety and performance, time cards for drivers, storing driver documentation, maintenance reporting and reminders.

GroundCloud founder and Chief Executive Dave Leland will continue to lead the company. Descartes Systems, based in Ontario, is publicly traded on Nasdaq, had roughly $425 million in revenue in 2022 and claims more than 10,000 customers in over 160 countries.

"Descartes continues to invest in our final-mile capabilities to make sure that our customers can fulfill orders and meet delivery commitments efficiently with worker and community safety at the forefront," said Edward Ryan, Descartes' chief executive, in a statement. "When combined with Descartes, we see a tremendous opportunity to leverage GroundCloud's safety content and compliance solutions across a wider set of industry verticals in our routing and mobile customer base."

In a video posted on the company's website, Leland touted Descartes Systems' product and development bandwidth, integration and data management capabilities, and its global reach.

"To deliver safely and efficiently on customer expectations in today's dynamic market conditions, final-mile carriers need a holistic approach to operations, safety and compliance," said Andrew Roszko, chief commercial officer at Descartes, in a statement. "GroundCloud helps ensure seamless operations, end-to-end visibility, and standards of safety and compliance are met, including helping final-mile carriers comply with the various safety mandates of large transportation brands."

Shareholders of GroundCloud could potentially earn up to $80 million more under a performance-based consideration if the company reaches its revenue targets in each of the first two years after the acquisition, according to a release from Descartes Systems.