Reported Earlier, RXO To Acquire Asset-Light Freight Brokerage Business Coyote Logistics From UPS For $1.025B Cash
Portfolio Pulse from Benzinga Newsdesk
RXO (NYSE:RXO) is set to acquire Coyote Logistics from UPS for $1.025 billion in cash. This acquisition will make RXO the third-largest provider of brokered transportation in North America, significantly enhancing its market position and customer base. The deal is expected to be immediately accretive to RXO's earnings and free cash flow.
June 24, 2024 | 7:17 am
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
RXO's acquisition of Coyote Logistics for $1.025 billion will significantly enhance its market position, diversify its customer base, and broaden its carrier network. The deal is expected to be immediately accretive to RXO's earnings and free cash flow.
The acquisition will make RXO the third-largest provider of brokered transportation in North America, immediately increasing its scale and providing significant synergies. The deal is expected to be accretive to earnings and free cash flow, which is positive for RXO's stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
UPS is selling Coyote Logistics to RXO for $1.025 billion in cash. UPS will continue to have its brokered transportation needs served by RXO under a contract running through January 2030.
While the sale of Coyote Logistics will provide UPS with $1.025 billion in cash, the ongoing contract with RXO ensures continuity in its brokered transportation needs. The impact on UPS's stock price is expected to be neutral in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50