DB Schenker announced that it acquired logistics software provider, Bitergo, in an undisclosed amount in a deal that would boost the freight forwarder's digital strategy.

Bitergo, based in Germany, offers comprehensive software solutions to digitalize logistics processes focusing on warehousing, supply chain execution, and mobile applications.

DB Schenker said prior to this buyout, the firms already worked closely three years ago adding that with the acquisition on May 31, the freight forwarder is strengthening its digital strategy and ventures toward cloud-based software for small and medium-sized customers.

With standardised modules for supply chain technologies, the logistics service provider can serve customers' individual requirements and respond to the increasing complexity of logistics, it added.

"For us, Bitergo is an ideal partner that we are happy to integrate into our vision of managing the supply chain digitally and end-to-end in the future," said Christa Koenen, CIO/CDO of Schenker AG.

"The European market for software-as-a-service providers in logistics is highly fragmented and does not meet the requirements of all players. Furthermore, competitors have very different backgrounds, core competencies, and value propositions. This cooperation creates great synergies: DB Schenker brings the global network as well as the long-standing competence in logistics and technology," Koenen added.

Andreas Trautmann, managing director of Bitergo, said DB Schenker is the "preferred partner" of the IT company.

"As a global player, the logistic service provider offers us an ideal new home to continue Bitergo's positive development in recent years. For our employees, in particular, the takeover is the best outcome for the company. We can now strengthen our portfolio together and work on Bitergo's continued growth," Trautmann added.

In its announcement, DB Schenker said Bitergo will continue to serve external customers as an independent entity.