Freightos Ltd., a booking and payment platform for the international freight industry, and Gesher I Acquisition Corp, a special purpose acquisition company (SPAC), have announced a merger in which the combined entity will be publicly listed on the NASDAQ.
The merged company will be named Freightos and will be listed under the ticker symbol “FROS.” It will have a pro forma enterprise value of about $435 million. The capital raised from the deal will be directed toward growing the business and improving margins.
Freightos acts as a broker among shipping industry participants, including airlines, trucking companies, ocean liners, thousands of freight forwarders, and more than ten thousand importers and exporters. Companies use Freightos’ digital platform to make rate comparisons and real-time bookings and for overall shipping management. They can compare shipping routes, capacity on ships or boats, and carbon emissions.
"Global freight moves the world," Zvi Schreiber, Chief Executive Officer of the Freightos Group, told Yahoo Finance. "Last year, $22 trillion worth of goods crossed borders, but we have all witnessed what happens when shipping doesn't run smoothly, creating inventory shortages and increasing prices that challenge businesses and consumers globally. This presents a massive opportunity to digitalize one of the last large offline industries."
The combined entity has secured $80 million in capital commitments from global investment firms and industry leaders, including Qatar Airways ($10 million), M&G Investments ($60 million), and Composite Analysis Group Inc. (up to $10 million).
Freightos has helped modernize the industry, shifting from manual pricing and spreadsheets to an integrated digital platform.
"It enjoys positive unit economics, high gross margins, an incredibly high growth rate, and impressive customer retention,” said Ezra Gardner, Gesher's CEO. “It is distinguished by its proprietary technology, data analytics, and deep network of customers comprising some of the largest players in the global supply chain today.”