RXO Completes Acquisition of Coyote Logistics
RXO (NYSE: RXO) has completed its acquisition of Coyote Logistics from UPS for $1.025 billion, becoming the third-largest provider of brokered transportation in North America. This strategic move enhances RXO's market position, diversifies its customer base, and expands its carrier network. The acquisition offers customers increased network density and additional power lanes, while providing carriers access to more customers and opportunities to reduce deadhead miles. CEO Drew Wilkerson emphasized the benefits for both customers and carriers, highlighting the company's focus on service, comprehensive solutions, innovation, and deep relationships.
RXO (NYSE: RXO) ha completato l'acquisizione di Coyote Logistics da UPS per 1,025 miliardi di dollari, diventando il terzo fornitore di trasporto brokerato più grande del Nord America. Questa mossa strategica migliora la posizione di mercato di RXO, diversifica la sua base clienti e amplia la sua rete di trasportatori. L'acquisizione offre ai clienti una maggiore densità di rete e ulteriori corsie di potenza, mentre fornisce ai trasportatori accesso a più clienti e opportunità di ridurre le miglia morte. Il CEO Drew Wilkerson ha sottolineato i benefici per entrambi, clienti e trasportatori, evidenziando l'attenzione dell'azienda al servizio, soluzioni complete, innovazione e profonde relazioni.
RXO (NYSE: RXO) ha completado su adquisición de Coyote Logistics de UPS por 1.025 millones de dólares, convirtiéndose en el tercer proveedor más grande de transporte intermediado en América del Norte. Este movimiento estratégico mejora la posición en el mercado de RXO, diversifica su base de clientes y amplía su red de transportistas. La adquisición ofrece a los clientes una mayor densidad de red y más rutas de potencia, al tiempo que proporciona a los transportistas acceso a más clientes y oportunidades para reducir las millas en vacío. El CEO Drew Wilkerson enfatizó los beneficios tanto para los clientes como para los transportistas, destacando el enfoque de la empresa en el servicio, soluciones integrales, innovación y relaciones profundas.
RXO (NYSE: RXO)는 UPS로부터 Coyote Logistics의 인수를 완료했습니다 (금액: 10억 2500만 달러), 이를 통해 북미에서 세 번째로 큰 브로커 운송 제공업체가 되었습니다. 이 전략적 조치는 RXO의 시장 지위를 강화하고, 고객 기반을 다양화하며, 운송업체 네트워크를 확장합니다. 인수로 인해 고객은 네트워크 밀도가 증가하고 추가적인 운송 루트를 이용할 수 있으며, 운송업체는 더 많은 고객과의 접근성을 확보하고 빈차 주행을 줄일 수 있는 기회를 제공합니다. CEO 드류 윌커슨은 고객과 운송업체 모두에게 주는 혜택을 강조하며, 회사의 서비스, 포괄적인 솔루션, 혁신 및 깊은 관계에 대한 초점을 강조했습니다.
RXO (NYSE: RXO) a finalisé son acquisition de Coyote Logistics auprès d'UPS pour 1,025 milliard de dollars, devenant ainsi le troisième plus grand fournisseur de transport médiatisé en Amérique du Nord. Ce mouvement stratégique améliore la position sur le marché de RXO, diversifie sa base de clients et élargit son réseau de transporteurs. L'acquisition offre aux clients une densité de réseau accrue et des voies supplémentaires, tout en donnant aux transporteurs accès à plus de clients et des opportunités de réduire les kilomètres à vide. Le PDG Drew Wilkerson a souligné les avantages pour les clients et les transporteurs, mettant en avant l'accent de l'entreprise sur le service, des solutions complètes, l'innovation et des relations solides.
RXO (NYSE: RXO) hat die Übernahme von Coyote Logistics von UPS für 1,025 Milliarden Dollar abgeschlossen und ist damit der drittgrößte Anbieter von Vermittlungstransporten in Nordamerika geworden. Dieser strategische Schritt stärkt die Marktposition von RXO, diversifiziert die Kundenbasis und erweitert das Netzwerk der Transportunternehmen. Die Übernahme bietet den Kunden eine höhere Netzdichte und zusätzliche Transportwege, während den Transportunternehmen der Zugang zu mehr Kunden und die Möglichkeit geboten wird, Leerfahrten zu reduzieren. CEO Drew Wilkerson betonte die Vorteile sowohl für Kunden als auch für Transportunternehmen und hob den Fokus des Unternehmens auf Service, umfassende Lösungen, Innovation und tiefgehende Beziehungen hervor.
- Acquisition of Coyote Logistics for $1.025 billion
- Becomes third-largest provider of brokered transportation in North America
- Enhanced market position and diversified customer base
- Expanded carrier network
- Increased network density and additional power lanes for customers
- More freight opportunities for carriers
- Substantial financial outlay of $1.025 billion for the acquisition
- Potential integration challenges merging Coyote's operations with RXO
Insights
RXO's $1.025 billion acquisition of Coyote Logistics marks a significant strategic move in the transportation industry. This deal catapults RXO to the position of third-largest provider of brokered transportation in North America, a substantial leap in market share. The acquisition's value lies not just in its size, but in its potential for synergies and network effects. By expanding its customer base and carrier network, RXO is poised to enhance its operational efficiency and bargaining power. However, investors should closely monitor the integration process, as mergers of this scale often face challenges in realizing projected synergies. The key financial metrics to watch in the coming quarters will be revenue growth, margin expansion and return on invested capital to gauge the success of this bold move.
This acquisition reshapes the competitive landscape of the North American brokered transportation market. RXO's enhanced scale could lead to increased pricing power and operational efficiencies, potentially pressuring smaller competitors. The expanded network density and additional power lanes are likely to attract more customers and carriers, creating a virtuous cycle of growth. However, the success of this strategy hinges on RXO's ability to integrate Coyote's operations seamlessly without disrupting existing relationships. The market will be watching for signs of customer churn or carrier dissatisfaction during the transition. Long-term, this move could accelerate the consolidation trend in the fragmented transportation brokerage sector, with implications for industry dynamics and potential future M&A activity.
The integration of Coyote's technology into RXO's existing systems presents both opportunities and challenges. Successfully merging these platforms could yield significant operational efficiencies and data insights, enhancing RXO's ability to optimize routes, reduce deadhead miles and improve overall service quality. The combined technological capabilities could also lead to innovative solutions in freight matching and predictive analytics. However, tech integrations of this scale are notoriously complex and risky. Investors should monitor for any service disruptions or data migration issues in the short term. The long-term success of this acquisition may well hinge on RXO's ability to leverage the combined technological assets to create a truly differentiated offering in the increasingly tech-driven transportation brokerage market.
RXO is now the third-largest provider of brokered transportation in
This acquisition enhances RXO’s market position, diversifies and expands its customer base and broadens its carrier network. For customers, RXO now offers increased network density and additional power lanes. For carriers, RXO offers access to more customers with opportunities to reduce deadhead miles.
“We’re thrilled to welcome Coyote’s employees, customers and carriers to RXO,” said Drew Wilkerson, chief executive officer of RXO. “This acquisition enables us to provide customers with even more capacity. Our larger scale will provide carriers with access to more freight. As we work to integrate Coyote’s people and technology into our business, we remain focused on providing the best service, most comprehensive set of solutions, continuous innovation and deep relationships for our customers.”
Coyote Logistics was founded in 2006 and acquired by UPS in 2015.
Goldman Sachs & Co. LLC served as financial advisor to RXO, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as its legal advisor.
About RXO
RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across
View source version on businesswire.com: https://www.businesswire.com/news/home/20240915229927/en/
Media Contact
Erin Kelly
erin.kelly@rxo.com
Investor Contact
Kevin Sterling
kevin.sterling@rxo.com
Source: RXO
FAQ
What company did RXO acquire and for how much?
How does the Coyote Logistics acquisition affect RXO's market position?
What benefits does the Coyote Logistics acquisition bring to RXO's customers?
How does the Coyote Logistics acquisition impact RXO's carrier network?
When was Coyote Logistics founded and previously acquired?
