UPS confirms $1.8 billion Coyote acquisition
The US express and logistics giant said it expected to close the deal within 30 days to acquire Coyote, which was founded in 2006 and reported annual revenue of $2.1 billion in 2014.
August 3, 2015
By Donald Urquhart
UPS has announced that it has entered into a definitive purchase agreement to acquire Coyote Logistics, a technology-driven, non-asset based truckload freight brokerage company for US$1.8 billion from its current owner Warburg Pincus. The US express and logistics giant said it expected to close the deal within 30 days to acquire Coyote, which was founded in 2006 and reported annual revenue of $2.1 billion in 2014.
David Abney, UPS CEO said: “The brokered full-truckload freight segment is a high growth market and we expect it will continue to outpace other transportation segments. 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.”
Jeff Silver, Coyote CEO, said: “The Coyote management team is very excited to become a part of UPS and continue to grow, now with UPS’s support. Our great people, leading technology and flexible organization will enable us to scale quickly to take full advantage of the added customers, lanes and capacity within UPS.”
Coyote arranges customers’ freight shipments on available trucking capacity contracted to members of its large carrier network, numbering more than 35,000 trucking companies. UPS said it had experienced very rapid revenue growth since inception and has built extensive relationships with a broad customer base.