Uber Freight is set to acquire Transplace for approximately $2.25bn, consisting of around $750m in common stock of Uber Freight’s parent company Uber Technologies and the remainder in cash. Uber Freight will acquire Transplace from TPG Capital, which acquired Transplace in 2017.
Since the acquisition by TPG Capital, Transplace has invested in technology and other growth initiatives to increase the size of the company’s customisable supply chain solutions. Particular attention has been paid to the digitisation of the global supply chain and the adoption of new logistics technology.
“The acquisition will combine the world’s premier shipper network platform with one of the industry’s most innovative supply platforms, to the benefit of all stakeholders,” said Frank McGuigan, CEO of Transplace. “Our expectation is that shippers will see greater efficiency and transparency and carriers will benefit from the scale to drive improved operating ratios. All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment. Finally, we want to thank TPG for their partnership as we have worked together to position Transplace as a leader in supply chain innovation.”
The stated goal of the combination of Uber Freight and Transplace is to create an industry-leading combined Freight Technology Operating System to enable a comprehensive end-to-end shipper-to-carrier solution, increasing efficiency and quality of service. It is also stated that Uber Freight’s network of digitally-enabled carriers with Transplace’s trusted shipper technology and operational solutions will allow the development of a fully scaled logistics platform built for both shippers and carriers of all sizes and needs.
The acquisition comes at a time of accelerated transformation in logistics. The demands of a volatile market and the increasing complexity of globalized logistics are clashing with industrial-age transportation technology. In the midst of capacity constraints and escalating transportation costs, shippers are adapting their operations at an increasing pace and looking for technology, support, and solutions that can modernize their supply chain and keep critical goods, and the economy, moving.
The completion of this transaction will enable Uber Freight to serve substantially more customers at all levels of the freight industry and will expand its presence into Mexico and through new capabilities in intermodal and customs brokerage. This transaction is expected to accelerate Uber Freight’s path to profitability and help the segment to break even on an adjusted EBITDA basis by the end of 2022.
Source: Transplace
