UPS is to acquire Coyote Logistics, a US technology-driven, non-asset based truckload freight brokerage company for $1.8 billion from Warburg Pincus.
“The brokered full-truckload freight segment is a high growth market and we expect it will continue to outpace other transport segments,” said David Abney, UPS chief executive officer. “This high quality acquisition significantly increases UPS full-truckload scale and we are uniquely positioned to take advantage of exciting new revenue growth and synergy opportunities.”
Coyote, which was founded in 2006, arranges customers’ freight shipments on available trucking capacity contracted to members of its large carrier network, numbering more than 35,000 trucking companies. It had annual revenue of $2.1 billion in 2014. UPS is looking for $100 million to $150m of annual operating synergies.