Uber Freight announces $2.25B acquisition

Digitally-enabled carrier network, Uber Freight, has agreed to acquire Transplace for approx. $2.25 billion USD.

This transaction comprises up to $750 million USD 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 is expected to 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, according to Uber Freight, comes at a time of accelerated transformation in logistics. The demands of a volatile market and the increasing complexity of globalised 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 modernise their supply chain and keep critical goods, and the economy, moving.

“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.”

Transplace CEO, Frank McGuigan, said: “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. 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. Finally, we want to thank TPG for their partnership as we have worked together to position Transplace as a leader in supply chain innovation.”

Transplace was acquired by TPG Capital in 2017. Over the course of the partnership, Transplace has invested heavily in technology and other growth initiatives to further bolster the company’s expansive, high-quality, customisable solutions for managing today’s supply chain.

“Our partnership with Transplace is a strong example of TPG Capital’s strategy to identify industry-leading tech-enabled services companies and invest behind them to drive sustained growth,” said Jack Daly, Partner at TPG Capital and Chairman of Transplace, and Alex Minasian, Principal at TPG Capital. “In a category that continues to benefit from several secular tailwinds, Frank and his experienced team have positioned the company as an innovative leader that is empowering customers of all sizes to improve and optimise their supply chains. We thank the entire Transplace team for their partnership and wish them continued success in their next chapter.”

The combination of Uber Freight and Transplace will reportedly optimise the movement of freight across the entire marketplace 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 built to meet both shippers and carriers where they are, no matter the size of their business or their transportation needs.

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