A Waterloo-based logistics software company is spending several million dollars to purchase an American tech firm.

Descartes Systems Group announced Wednesday that it has completed a purchase of Appterra, which provides cloud computing services to help businesses integrate their supply chains.

The initial purchase price is $US5.8 million, with up to US$1.6 million more potentially being added is Appterra hits specific revenue targets.

“By adding Appterra’s technology and services to our business, our customers will have access to broader data integration capabilities for standardizing and automating buy-side and sell-side processes,” Descartes CEO Edward J. Ryan said in a press release.

Descartes shares are traded on the TSX and NASDAQ.