Uber Freight to Acquire Transplace in $2.25 Billion Deal
Uber Freight and Transplace have entered into a definitive agreement for Uber Freight to acquire Transplace for approximately $2.25 billion, consisting of up to $750 million in common stock of Uber Freight’s parent company, Uber Technologies, Inc. and the remainder in cash.
Uber Freight will acquire Transplace from TPG Capital, the private equity platform of alternative asset firm TPG.
Uber Freight’s acquisition of Transplace will create one of the leading logistics technology platforms, with one of the largest and most comprehensive managed transportation and logistics networks in the world.
The transaction is subject to regulatory approval and other customary closing conditions.
The acquisition comes at a time of accelerated transformation in logistics. The demands of a volatile market and the increasing complexity of globalized logistics are clashing with industrial-age transportation technology.
In the midst of capacity constraints and escalating transportation costs, shippers are adapting their operations at an increasing pace and looking for technology, support, and solutions that can modernize their supply chain and keep critical goods, and the economy, moving.
Lior Ron, Head of Uber Freight said: “This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem.
“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.”
Frank McGuigan, CEO of Transplace said: “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."
The combination of Uber Freight and Transplace will optimize the movement of freight across entire marketplaces and deliver best-in-class services to shippers, while also unlocking opportunities for carriers.
Uber Freight’s vast network of digitally-enabled carriers, combined with Transplace’s trusted shipper technology and operational solutions, will result in a fully scaled logistics platform.