Uber inks blockbuster deal to buy 3PL Transplace for $2.25 billion
Uber Freight acquires Transplace with eye on improving market position, profitability and coverage
Uber Freight has signed an agreement worth approximately $2.25 billion to acquire Transplace, a 3PL providing logistics technology and transportation management services.
The deal will trade up to $750 million in common stock of Uber Freight’s parent company, Uber Technologies, Inc., with the remainder of the deal’s worth being handled in cash.
The deal marks a move by Uber Freight to up its position in the market as an all-in-one end-to-end shipper-to-carrier solution and also to increase its geographical coverage, with Transplace operating a presence in Mexico.
It also noted that this will help to balance Uber Freight’s books, with the company expecting that the deal would help the freight segment of Uber to break even on an adjusted EBITDA basis by the end of 2022.
Uber Freight said in a press release that it hopes to combine its own network of carriers and systems with Transplace’s shipper technology and operational solutions to “Reduce friction across the supply chain and enable a new era of logistics management.”
They hope to do this by putting in Uber’s support services based on its technology platform, while expanding carriers’ access to shippers and service lines, including intermodal, cross border and Less-Than-Truckload.
However, Uber Freight said that its brokerage will continue to operate independently from Transplace’s managed transportation services.
"This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem," said Lior Ron, Head of Uber Freight. "This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most."
"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."
Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG.
The transaction is subject to regulatory approval and other customary closing conditions.