UPS - RXO To Buy Coyote Logistics From UPS In Billion-Dollar Deal - What's On The Move? | Benzinga
RXO, Inc. (NYSE:RXO) shares are trading higher after the company inked a definitive agreement to acquire Coyote Logistics from United Parcel Service, Inc. (NYSE:UPS) for $1.025 billion in cash.
As per the terms, the transaction disclosed on Sunday will be financed through a combination of equity and debt, including a $300 million equity investment from MFN Partners and a $250 million equity investment from Orbis Investments, both significant shareholders of RXO.
RXO will maintain its role in fulfilling UPS’s brokered transportation requirements under an existing contract valid until January 2030.
This acquisition is expected to bolster RXO’s market standing, broaden its customer base, and expand its network of carriers.
RXO’s Board of Directors has unanimously approved the transaction, which is expected to be ...