Headwater Technology Solutions Inc. Expands Logistics Footprint with Acquisition of TMS Provider Freight Logix Inc.

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Headwater Technology Solutions Inc. continues its growth campaign through the acquisition of Transportation Management Solution innovation leader. Adds impact to purchase of Third Party Logistics solution provider Delfour Corporation earlier in the year.

Headwater Technology Solutions Inc., a fast-growing supply chain software solutions, services and consulting enterprise, has purchased Oakville-based Freight Logix Inc., a transportation management systems (TMS) company, the second such acquisition the company has made since the beginning of 2005, it was announced jointly today by Headwater Chairman and CEO Markus Luft and Freight Logix President Mel Mills. As in the earlier acquisition, the Freight Logix staff will become Headwater employees, with Mills assuming the position of Vice President - Freight Management Systems.

"This was an ideal acquisition for Headwater," Luft said. "It fits perfectly into our growth strategy, which encompasses both organic and acquisitional growth. As well, it extends our SmartEnterprise 2 logistics management software suite to manage the transportation and freight management requirements of our logistics customers. The acquisition also fits into our consulting enterprise, allowing us to add Headwater professional resources to Freight Logix rapidly growing TMS client base.

"Headwater is committed to aggressively pursue sales in the Transportation industry and continue the development of the Freight Logix solution for the entire logistics marketplace. This acquisition leaves Headwater with a significantly stronger overall logistics offering, and presents both the logistics management and transportation management business disciplines with excellent new sales prospects as well as opportunities to upgrade existing customers with solutions from Headwater’s expanded capabilities."    

According to Mills, "Joining with Headwater provides opportunity for the continued development of the Freight Logix TMS solution and provides additional professional services to meet our customers consulting and support requirements. Not only do we gain access to seasoned consulting, marketing, finance and administrative staff, but also a whole new marketplace for additional growth and expansion. We are very excited about the opportunities this acquisition presents to our staff, our customers and our partners. It is a win-win situation for everyone."

"Freight Logix and Delfour have been working closely in a partner relationship for several years, and have already integrated the two solutions” added Joe E. Couto, Senior Vice President of Headwater. “The integration challenges have been met, so new implementations, upgrades and replacements can proceed quickly and efficiently. There are enormous benefits to be realized by our customers through the synergy of the two systems."

The Freight Logix TMS Solution

Freight Logix has developed an industry leading transportation management solution to address the complex transportation and freight operations that most companies face in today’s marketplace, with ever increasing pressure on execution, customer service and profitability. It combines Less-Than-Truckload, Truckload, Pickup & Delivery (P&D) and Cartage functionality, for Asset, Non-asset and Logistics operations into a single solution. It is designed to manage and control revenue and costs for any segment of the transportation operation, be it a leg, trip, truck, driver, lane, customer or any combination of these segments.

It integrates all of the activities associated with transportation and freight management, from order entry through dispatch and rating to invoicing, driver and carrier settlement and finance, eliminating redundant data entry, reducing errors and improving efficiency and profitability. It is a 'best-of-breed' solution integrating industry leading products for GPS and driver communication, document imaging, mileage engines etc., to provide customers with the ability to configure unique solutions to their complex freight operations. Freight Logix began delivering their TMS solution in 2000, and since then they have implemented over 60 transportation solutions in Canada and the United States.

ABOUT HEADWATER TECHNOLOGY SOLUTIONS INC.

Headwater Technology Solutions Inc. is a supply chain software development and professional services firm that provides logistics management consulting and solutions, transportation management solutions, and an array of corporate/financial consulting and implementation services. Headwater’s Delfour SmartEnterprise 2 and Freight Logix third/fourth/corporate party logistics and transportation solutions enable seamless supply chain planning and execution that leads to smarter and more profitable management of goods as they move through the supply chain. The company’s supply chain consultation and implementation services focus on the Oracle, SAP and Microsoft platforms, with proficiency in warehouse and transportation management systems, RF and RFID technologies, and materials management systems (MMS). Headwater maintains corporate headquarters in the Toronto suburb of Markham and a regional office in Oakville, marketing its services and solutions internationally. For information, call 866 306 0999, email info@headwaterinc.com or visit http://www.headwaterinc.com. Freight Logix representatives can be reached at 866 765 3541.

CONTACT:

Tina Langridge

866 306 0999

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Victor Wortman