UPS to sell freight broker Coyote Logistics for $1bn

A joint press release states that RXO's current funds as well as additional debt, including those from the company's largest shareholders, will be used to finance the transaction. Because of the asset addition, RXO will grow to be the third-biggest freight broker in North America, with synergies of at least $25 million.

It is anticipated that the deal would be finalized in late 2024.

Last year, Coyote generated over $3.2 billion in revenue and $86 million in adjusted EBITDA.

UPS and RXO securities have both experienced a 13% decline since the year's commencement. The S&P 500 index increased by 15% over that time.

source: bloomberg.com