Trimble is expanding its global transportation footprint with the acquisition of Transporeon, a cloud-based transportation management software platform that operates predominantly in Europe, for €1.88 billion, or about $2 billion U.S.

Transporeon's software platform digitizes the management of freight movement, with modular applications that power a global network for 145,000 carriers and 1,400 shippers and load recipients with an integrated suite of sourcing, planning, execution, monitoring and settlement tools.

Trimble will acquire Transporeon from Hg, a software and services investor and current majority shareholder in the business.

In prepared remarks, Trimble CEO Rob Painter explained that the transportation industry represents one of the largest opportunities available to Trimble. “It’s a market that is large, global, underserved and underpenetrated, and it is undergoing a secular adoption of technology to improve productivity and sustainability.”

“From a geographic perspective, the North American centricity of our current business complements Transporean’s European-centric footprint,” Painter explained. “The combined business will be more global and focused on a meaningfully bigger total addressable market. Trimble’s strong technology footprint with carriers — and our technologies in mobility, enterprise software and maps will complement Transporean’s historically shipper-focused solutions and create significant opportunities for cross sell and higher network density.”

Transporeon’s open cloud-based platform integrates with more than 3,000 global ERP and transportation management systems, using automation and real-time insights to help customers increase competitiveness, lower costs, reduce waste and solve complex freight problems. It operates predominantly in Europe, as well as in developed markets across the Americas and Asia, but Trimble said the deal will allow it to offer enhanced TMS platform solutions to Trimble customers in the North American market as well as Transporeon customers in Europe.

“Transporeon is a leading market player with a large [total addressable market], profitable growth, and a platform focused on connected supply chain infrastructure, all of which are highly aligned with Trimble’s Connect & Scale strategy,” Painter said in a news release. “Its solutions are deeply integrated with carriers and shippers, and we are confident the platform will play an increasingly important role in the modernization of supply chains globally.”

Transporeon's platform and network enables 145,000 carriers and logistics service providers and 1,400 shippers and load recipients to manage approximately €48 billion of freight spend and over 25 million transports each year. Network participation has grown continuously over 15 years and the platform integrates with more than 3,000 global ERP, WMS and TMS systems. With its strong footprint into the European market, Transporeon expands Trimble’s total addressable market by approximately $5 billion.

Transporeon also helps Trimble expand its sustainability offering by helping to reduce under-utilized carrier capacity and empty miles, and to enhance the tracking, reporting and management of emissions.

The transaction is expected to close in the first half of 2023, subject to customary closing conditions including regulatory approvals. The Transporeon business will be reported in Trimble’s financials as part of Trimble’s Transportation segment.