The Waterloo, Ont.-based company's shares were halted briefly on the TSE and on the Nasdaq Thursday morning pending the announcement.
Descartes said in a release it has agreed to sell two million shares at $64 each to an underwriting syndicate led by Griffiths McBurney & Partners.
The company also said it has agreed to increase the size of the offering by 50%, or one million shares, at the underwriters' discretion.
Descartes began as a privately-held high-tech startup run by a small group of University of Waterloo graduates and faculty in the early 1980s, providing custom software for high transaction processing businesses. In the mid 1990s it shifted its focus to the Internet.
The company has grown quickly since its shift in business through strategic acquisitions. Revenues climbed from $8 million in 1995 to $48 million in 1999. It has 470 employees and more than 850 customers in 60 countries.
