WiseTech acquires FRDM.ai in US$10 million deal to accelerate VerifyWise
WiseTech Global (ASX:WTC) has entered into a binding agreement to acquire California-based FRDM.ai, an AI-powered supply chain risk and compliance intelligence platform. The deal carries an upfront consideration of US$10 million in cash and WTC shares, with all figures reported in U.S. dollars.
Under the terms, the maximum payable through all-cash earn-outs is US$14.31 million. Completion is expected on 3 August 2026, subject to customary conditions precedent.
The acquisition directly accelerates WiseTech’s VerifyWise solution and supports its vision of being “the operating system for global trade and logistics.” WiseTech is described as a leading developer of logistics execution software and supply chain technology.
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What FRDM.ai brings to the table
FRDM.ai is an AI-powered platform that maps supplier networks well beyond direct suppliers and scores risk in real time. In plain terms, it helps organisations see who their suppliers actually buy from, several layers deep, and flags where trade or compliance risks may be hiding.
Key details on the platform include:
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Established in California in 2018
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Maps supplier networks across many tiers (Tier 1, 2, 3 and beyond)
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Draws on more than 6 billion trade records to calculate risk scores
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Covers modern slavery, forced labour, denied and restricted parties, sanctions, geopolitical risks, cyber exposure and other compliance obligations
The platform also carries pre-built frameworks for multi-tier supply chain due diligence obligations. These span a range of international regulations:
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UFLPA – Uyghur Forced Labor Prevention Act (U.S.)
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CSDDD – Corporate Sustainability Due Diligence Directive (EU)
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LkSG – Germany’s Supply Chain Due Diligence Act
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CBAM – Carbon Border Adjustment Mechanism (EU)
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EUDR – EU Deforestation Regulation
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PFAS – per- and polyfluoroalkyl substances regulations
Justin Dillon, Chief Executive Officer and Founder, FRDM.ai
“Joining WiseTech Global, with its substantial global network across supply chain and logistics and ongoing investment in product innovation, positions the FRDM.ai platform to scale our global supply chain risk and compliance offering and fulfill our vision of leveraging trade to change the world. This is a very exciting phase for FRDM.ai and our team.”
How VerifyWise creates value for WiseTech
FRDM.ai’s risk intelligence capabilities will combine with several existing WiseTech solutions, including BorderWise, Denied Party Screening, and Global Knowledge, alongside other data and capabilities, to create VerifyWise.
The company describes VerifyWise as “a data driven, AI-enabled solution” that uses the deep datasets both companies have developed, accumulated or licensed to verify identity, create trust and validate trade data across the supply chain, creating a “verified responsible sourcing model” for suppliers and buyers alike.
WiseTech outlined three ways the transaction is expected to create value:
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Extending compliance capabilities from transaction-level screening to network-level, multi-tier supply chain verification
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Creating significant cross-sell opportunities across WiseTech’s global network of more than 22,000 logistics providers and over 500,000 connected enterprises, embedding FRDM.ai’s capabilities directly
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Strengthening the data and network underpinning VerifyWise as each participant verifies and enriches the datasets, increasing the value of the network for all
Zubin Appoo, Chief Executive Officer, WiseTech Global
“As WiseTech’s Chief Innovation Officer, Richard White has worked closely with FRDM.ai’s founder, Justin Dillon, for more than nine months to bring FRDM.ai into the WiseTech Group, accelerating our VerifyWise plans. Our shared vision is to help organizations proactively identify and mitigate supply chain regulatory issues more easily.”
The reference to Richard White as Chief Innovation Officer reflects a broader governance realignment at WiseTech, with Raelene Murphy appointed as Independent Chair effective 7 July 2026 and White stepping into a dedicated product and innovation mandate.
Why supply chain verification matters
Multi-tier supply chain compliance is becoming a business-critical function. Evolving regulations and geopolitical events make responsible sourcing increasingly complex and high risk, yet verified compliance is necessary for critical trade flows and for customer confidence.
The challenge is that visibility remains shallow. Many organisations hold accurate data only at a point in time, and only for a small subset of their direct Tier 1 suppliers, if at all. Deeper mapping of Tier 2 and Tier 3 suppliers, together with real-time monitoring, is increasingly seen as necessary for accurate compliance reporting.
The demand signal is clear from procurement leaders. According to the Deloitte 2025 CPO survey, 64% of Chief Procurement Officers identify greater visibility of their supply chain as a key priority in their risk mitigation strategies.
Regulation is adding further weight. The EU Forced Labor Regulation explicitly ties market access to meeting traceability requirements, meaning companies that cannot prove compliance across their supply chain risk losing sales opportunities, customer trust and reputation.
For investors, this points to a large, regulation-driven demand tailwind. VerifyWise is positioned to serve a broad range of participants, including importers, exporters, traders, shippers, freight forwarders, banks, legal offices, accounting providers and other parties with supply chain compliance obligations.
The investment case and what comes next
WiseTech considers FRDM.ai “highly accretive” and expects it to add substantial value to the company’s products, customers and their supply chains. No financial guidance on earnings impact was disclosed, so the characterisation reflects management’s own assessment rather than a quantified projection.
The company has framed the combined offering as a “breakthrough capability,” pairing WiseTech’s data-rich existing solutions with FRDM.ai’s AI-powered verification and continuous supplier monitoring across multiple tiers.
| Deal Element | Detail |
|---|---|
| Target | FRDM.ai (founded California, 2018) |
| Upfront consideration | US$10 million (cash and WTC shares) |
| Maximum earn-out | US$14.31 million (all-cash) |
| Expected completion | 3 August 2026 |
| Strategic outcome | Accelerates VerifyWise; extends compliance to multi-tier verification |
The transaction remains subject to customary conditions precedent, with completion targeted for 3 August 2026.
Looking ahead, VerifyWise strengthens WiseTech’s compliance offering and reinforces its ambition to be the operating system for global trade and logistics. For shareholders, the acquisition adds a network-level verification capability to a business already connected to more than 22,000 logistics providers and over 500,000 connected enterprises, expanding the ways WiseTech can serve compliance-driven demand across global trade.
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