RXO (NYSE: RXO) has finalized the acquisition of Coyote Logistics from UPS for a total of $1.025 billion, propelling the company to become the third-largest provider of brokered transportation services in North America. With this acquisition, RXO is aiming to strengthen its market position, broaden its customer base, and expand its carrier network.
The acquisition of Coyote Logistics is expected to enhance RXO's offerings by providing increased network density and additional power lanes for its customers. Simultaneously, it offers carriers access to more freight and opportunities to reduce deadhead miles. Drew Wilkerson, the CEO of RXO, expressed excitement about the acquisition, emphasizing the company's commitment to delivering enhanced capacity for customers and providing carriers with access to a larger pool of freight.
Notably, the acquisition of Coyote Logistics complements RXO's existing tech-enabled truck brokerage services and managed transportation solutions. The company's strategic move is designed to leverage Coyote's people and technology to expand its service offerings, drive continuous innovation, and foster deeper customer relationships.
RXO's acquisition was guided by Goldman Sachs & Co. LLC as its financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as its legal advisor. As a result of the acquisition, RXO is now poised to offer an even more comprehensive set of solutions while incorporating Coyote's expertise into its operations.
RXO, headquartered in Charlotte, N.C., is a leading provider of asset-light transportation solutions, leveraging cutting-edge technology to efficiently move freight across supply chains in North America. The company's acquisition of Coyote Logistics marks a significant milestone in its quest to solidify its presence in the transportation and logistics industry. Following these announcements, the company's shares moved 0.5%, and are now trading at a price of $25.83. For the full picture, make sure to review RXO's 8-K report.
