SYDNEY: WiseTech Global Ltd., a developer of logistics execution software, said Wednesday it has agreed to acquire FRDM.ai, a supply chain risk and compliance intelligence platform, in a deal valued at up to $24.3 million.
The transaction includes an upfront payment of $10 million in cash and WiseTech shares, plus an all-cash earn-out of up to $14.31 million. The acquisition is expected to close Aug. 3, subject to customary conditions.
FRDM.ai, founded in California in 2018, uses artificial intelligence to map supplier networks beyond direct vendors and scores risks in real time, including modern slavery, geopolitical threats, human rights issues and other supply chain vulnerabilities.
The company’s technology will be combined with WiseTech’s existing solutions — including BorderWise, Denied Party Screening and Global Knowledge — to form VerifyWise, a data-driven, AI-enabled tool designed to verify identities, validate trade data and create a responsible sourcing model for suppliers and buyers.
WiseTech said the acquisition advances its goal of becoming the operating system for global trade and logistics. The company expects the deal to extend its compliance capabilities beyond transaction-level screening to multi-tier supply chain verification, create cross-selling opportunities across its network of more than 22,000 logistics providers and 500,000 connected enterprises, and strengthen the data underpinning VerifyWise.
Executives Cite Shared Vision for Supply Chain Transparency
Zubin Appoo, chief executive officer of WiseTech Global, said the company’s chief innovation officer, Richard White, had worked with FRDM.ai founder Justin Dillon for more than nine months to bring the platform into the WiseTech group.
“Our shared vision is to help organizations proactively identify and mitigate supply chain regulatory issues more easily,” Appoo said.
Dillon said joining WiseTech would allow FRDM.ai to scale its global compliance offering. “This is a very exciting phase for FRDM.ai and our team,” he said.
New Platform Aims to Simplify Supplier Verification
WiseTech said VerifyWise would enable organizations to verify suppliers across multiple tiers — primary, secondary, tertiary and beyond — with real-time alerts when compliance status changes.
The company noted that 64% of chief procurement officers have identified greater supply chain visibility as a key priority in risk mitigation. New regulations, including the EU Forced Labor Regulation, increasingly tie market access to traceability requirements, making deeper visibility into Tier 2 and Tier 3 suppliers critical.
FRDM.ai’s platform draws on more than 6 billion trade records to calculate risk scores for human rights, forced labor, sanctions, cyber exposure and other compliance obligations. It includes pre-built frameworks for due diligence under laws such as the UFLPA, CSDDD, LKSG, CBAM, EUDR and PFAS.
WiseTech said VerifyWise would serve a range of industry participants, including importers, exporters, freight forwarders, banks, legal offices, accounting providers, real estate agents and precious metal dealers.
