RXO to acquire Coyote Logistics from UPS

RXO, a brokerage transportation company, has entered into a definitive agreement to acquire Coyote Logistics, an asset-light freight brokerage business, for US$1.025 billion from UPS.

In addition to its U.S. services, Coyote Logistics offers cross-border services into Canada, including truckload, LTL and intermodal.

RXO said this acquisition will enhance its market position, diversify and expand its customer base and broaden its carrier network. At closing, RXO will be the third-largest provider of brokered transportation in North America.

Under the terms of the agreement, RXO will pay US$1.025 billion in cash for Coyote. RXO will continue to serve UPS’s brokered transportation needs under a contract that runs through January 2030.

“RXO’s highly accretive acquisition of Coyote will immediately increase the scale of our brokerage business, providing customers with more capacity across a wider array of power lanes,” said Drew Wilkerson, CEO of RXO. “RXO will realize significant synergies from the acquisition by quickly integrating Coyote’s business into RXO and leveraging our cutting-edge technology. The addition of Coyote’s customer base will diversify RXO’s vertical mix and will increase the number of customers that do more than $1 million in business with us by approximately 80 per cent. This acquisition will provide RXO with both immediate and long-term opportunities for revenue and earnings growth and will generate significant returns for shareholders. I look forward to welcoming Coyote’s employees to our team and working together to achieve excellent results for our customers, shareholders, carrier partners and employees for years to come.”