CDL 1000 Acquires Next Trucking

Chicago-based digital freight broker CDL 1000 has acquired its competitor, Next Trucking, in an equity deal.

The terms of the deal were not disclosed, but this merger unites the strengths of both companies. CDL 1000's expertise in managing short-haul routes between seaports and warehouses complements Next Trucking's operations in the bustling ports of Los Angeles and Long Beach, California.

Key Insights:

• Strategic Expansion: The acquisition enables CDL 1000 to significantly enhance its presence, particularly in Los Angeles and Long Beach. This positions it among the top trucking entities in the area.
  • This move follows CDL 1000's recent acquisition of Hickory Transportation Services.
• Industry Challenges: The backdrop to this acquisition is the ongoing freight recession, which has persisted over the last two years. High-profile digital freight startups have faced setbacks, including the shutdown of Convoy and financial losses reported by Uber Technologies’ Freight unit.

Financial Dynamics:

Next Trucking, established in 2015, had raised $273 million before its acquisition and was valued at $196 million as of July 2023. The acquisition by CDL 1000 was supported by financing from entities like Brookfield Growth and Mucker Capital, among others.

Source: WSJ