RXO to Acquire Coyote Logistics from UPS for $1 Billion

RXO, a leading provider of transportation and logistics solutions, has announced an agreement to acquire Coyote Logistics, a subsidiary of UPS, for $1 billion in cash. The deal is expected to close in the second half of 2024, subject to customary closing conditions and regulatory approvals. Coyote Logistics is a leading provider of freight brokerage and logistics services, with a network of over 60,000 carriers and 3,000 employees. The acquisition will enhance RXO's capabilities in the freight brokerage and logistics markets, expanding its customer base and geographical reach. The deal also signifies a shift in UPS's strategy, as it focuses on its core package delivery business. The acquisition is expected to generate significant value for RXO, allowing the company to capitalize on the growing demand for freight brokerage and logistics services. The deal is a major milestone for RXO, marking a significant step forward in its growth strategy.

Summary

"The acquisition of Coyote Logistics by RXO is a strategic move that will strengthen RXO's position in the freight brokerage and logistics market. The deal is expected to generate significant value for RXO, allowing the company to expand its customer base and geographical reach. UPS's decision to sell Coyote Logistics is consistent with its focus on its core package delivery business."