RXO to Acquire Coyote Logistics from UPS for $1.025 Billion

RXO has announced its definitive agreement to purchase Coyote Logistics, an asset-light freight brokerage company, for $1.025 billion from UPS. The acquisition is anticipated to bolster RXO’s market position, diversify its customer base, and expand its carrier network, making RXO the third-largest provider of brokered transportation in North America upon completion.

RXO expects the transaction to immediately and considerably enhance its adjusted diluted earnings per share and adjusted free cash flow. The acquisition is set to be financed through a combination of equity and debt, including substantial investments from MFN Partners and Orbis Investments.

The transaction is subject to customary closing conditions and regulatory approvals and is projected to close by the end of 2024.