North Carolina-based RXO, a asset-light transportation solutions provider, recently purchased Chicago-based Coyote Logistics, a third-party logistics provider, from UPS for $1.025 billion.
The purchase makes RXO the third-largest provider of brokered transportation in North America. It also diversifies and expands RXO’s customer base, broadens its carrier network, and enhances market position.
Customers will now have access to additional power lanes and increased network density while carriers will have access to more customers with opportunities to reduce deadhead miles.
“We’re thrilled to welcome Coyote’s employees, customers and carriers to RXO,” Drew Wilkerson, RXO CEO, said. “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.”
RXO offers tech-enabled truck brokerage services and complementary solutions such as managed transportation and last mile delivery. The company combines scale, technology and third-party capacity to move freight for its customers. It is headquartered in Charlotte.
Founded in 2006, Coyote Logistics matches more than 10,000 shipments daily. UPS acquired the company in 2015.