HUBG - Hub Group acquires TAGG Logistics for $103M in cash

• Hub Group ( NASDAQ: HUBG ) said Monday it acquired TAGG Logistics - an e-commerce, B2B and omnichannel fulfillment solution provider - for $103M, funded with cash on hand.
• HUBG granted contingent compensation to TAGG's senior management to incentivize their retention.
• TAGG expects to generate ~$200M of annual revenue in 2022.
• The acquisition bolsters HUBG's presence in the consolidation and fulfillment space and adds an e-commerce offering .
• It also adds scale to HUBG's logistics service line and is expected to result in complementary cross-selling opportunities for HUBG's and TAGG's customer bases.
• On Aug. 8, HUBG repurchased ~$35M of class A and class B stock at the class A stock closing price of $80.83/share.
• HUBG's board approved an increase to its repurchase authorization so that $75M remained under the program.
• Since then, HUBG purchased an additional $15M of class A, bringing total repurchases to ~$50M this quarter.

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