Charlotte-based RXO acquired Coyote Logistics, an asset-light freight brokerage business, last month from UPS for $1.025 billion. RXO hopes the acquisition will bolster its market position, expand its customer base and broaden its carrier network to make it the third-largest provider of brokered transportation in North America.
RXO CEO Drew Wilkerson said the acquisition of Coyote will enhance the scale of the company’s brokerage business, providing customers with increased capacity across a wider array of power lanes. The deal is expected to bring significant synergies and various opportunities for revenue and earnings growth, ultimately benefiting RXO’s shareholders.
The transaction, which is anticipated to close by the end of 2024, was unanimously approved by RXO’s Board of Directors and is subject to customary closing conditions and regulatory approvals. RXO reaffirmed its second-quarter adjusted EBITDA outlook and is expecting adjusted earnings between $24 million and $30 million. RXO is a leading provider of asset-light transportation solutions and offers tech-enabled truck brokerage services.