TPG Capital set to acquire logistics and transportation specialist Transplace
Global private equity investment firm TPG Capital has announced plans to acquire transportation and logistics management company Transplace, with the deal expected to close in September.
With a customer base of 1,000 merchants, Transplace is a leading provider of supply chain consultancy and transportation management solutions in North America.
President of the firm Frank McGuigan expressed his enthusiasm in the partnership, confident that it will provide a strong platform to further the growth of Transplace.
“We are excited to partner with TPG Capital, which has a long history of creating value across sectors, including software, technology, and industrials,” he said.
“As our new equity partner, TPG will support the continued growth of our business, while building value for our customers and creating attractive opportunities for employees.”
TPG will be acquiring Transplace from Greenbriar Equity Group in a move that will see the firm partner with company management to ensure the success of the deal.
Global Head of Industrials and Business Services for TPG Jack Daly revealed his own understanding of the growing complexity in supply chains, and remains confident in Transplace as a market leader to excel in industry innovation.
“Transplace is providing an expansive, high-quality, customisable solution for managing today’s supply chain.
“The company’s leadership, ongoing focus on innovation, and customer service is unmatched, and we believe Transplace is well-positioned to thrive from the immense technological change happening within logistics today.
“We are excited to partner with Tom, Frank, and the Transplace team to accelerate growth, both organically and through acquisition.”
This is TPG’s third investment into the supply chain sphere within the last year, in line with the company’s growing focus on improving general business efficiency.
Uber Freight to Acquire Transplace in $2.2bn Deal
Uber Freight is to acquire logistics technology and solutions provider Transplace in a deal worth $2.25bn.
The company will pay up to $750m in common stock and the remainder in cash to TPG Capital, Transplace’s private equity owner, pending regulatory approval and closing conditions.
“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, Head of Uber Freight, and former founder of the Uber-owned trucking start-up Otto.
Uber’s Big Play for Supply Chain
Transplace is one of the world's largest managed transportation and logistics networks, with 62,000 unique users on its platform and $11bn in freight under management. It offers truck brokerage and other capacity solutions, end-to-end visibility on cross border shipments, and a suite of digital solutions and consultancy services.
The purchase is the latest move by parent company Uber, which launched as a San Francisco cab-hailing app in 2011, to diversify its offering and create new revenue streams in all transport segments.
Transplace said the takeover comes amid a period of “accelerated transformation in logistics”, where globalisation, shipping and transport disruption, and widespread volatility are colliding.
Uber Freight plans to integrate the Transplace network into its own platform, which connects shippers and carriers in a dashboard that mirroring the intuitive experience found in its consumer vehicle booking and food ordering services.
“This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to 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,” said Ron.
Frank McGuigan, CEO of Transplace, said the resulting merger will offer enhanced efficiency and transparency for shippers, and benefits of scale for carriers. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment,” he added.
History of Uber Freight
Uber Freight was established in 2017 and separated into its own business unit the following year. In 2019 the company had expanded across the entire continental US, established a headquarters in Chicago. Later that year it launched its first international division in Europe, initially from a regional foothold in the Nertherlands, and later moving into Germany.
The logistics spinoff attracted a $500m investment from New York-based Greenbriar Equity Group in October 2020, and launched a new shipping platform for companies of all sizes in May, partly in response to a driver shortage in Canada.