Home > Software > Business Software > Uber Freight Is Buying Logistics Software Firm Transplace for $2.25 Billion – Barron’s

Uber Freight Is Buying Logistics Software Firm Transplace for $2.25 Billion – Barron’s

Uber said the deal will help its freight operation become profitable more quickly.

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In a major push to expand its freight business, Uber Technologies  announced an agreement to buy the logistics management software company Transplace for $2.25 billion in cash and stock from the private-equity firm TPG Capital.

Under the terms of the deal, Uber will issue up to $750 million in common stock to TPG, with the rest of the purchase price to be paid in cash. The deal is subject to regulatory approval.

TPG acquired Transplace in 2017.

The company said Uber Freight’s acquisition of Transplace will create a leading logistics-technology platform, with one of the biggest managed transportation and logistics networks in the world.

“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” Uber Freight head Lior Ron said in a statement. The deal will “create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most.”

The company said the deal will help Uber Freight to become profitable sooner, and that the business should break even in terms of adjusted earnings before interest, taxes, depreciation, and amortization by the end of 2022.

In the March quarter, Uber Freight had revenue of $301 million, up 51% from a year earlier, accounting for just over 10% of the company’s total revenue.

Uber shares were up 1.1%, to $48.02 on Thursday afternoon.

Write to Eric J. Savitz at eric.savitz@barrons.com