Uber Freight is buying acquire Transplace for approximately US$2.25 billion from TPG Capital, which acquired it in 2017. The transaction is subject to regulatory approval and other customary closing conditions.
Transplace offers logistics management, strategic capacity and cross-border services.
Since launching in 2017, Uber Freight has become one of the world’s largest digitally enabled carrier networks with over 70,000 carriers in its network and thousands of shippers as customers.
The combination of the two companies will create one of the largest and most comprehensive managed transportation and logistics networks in the world.
“Our expectation is that shippers will see greater efficiency and transparency and carriers will benefit from the scale to drive improved operating ratios,” said Frank McGuigan, CEO of Transplace.
“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.”
Since its acquisition by TPG Capital in 2017, Transplace has invested in technology. Digitization of the global supply chain and the rapid adoption of logistics technology and solutions continue to drive investment activity across TPG’s platforms.
Uber Freight’s brokerage will continue to operate independently from Transplace’s managed transportation services.
Completion of this transaction will enable Uber Freight to serve more customers and will expand its presence into Mexico and through new capabilities in intermodal and customs brokerage.
This transaction is expected to help Uber Freight break even on an Adjusted EBITDA basis by the end of 2022.