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RXO's $500M stock offering powers its acquisition of Coyote Logistics, expected to close by September 20, 2024.
RXO, Inc. is one step closer to finalizing its acquisition of Coyote Logistics. RXO has recently announced the successful completion of a $500 million public stock offering, strengthening the company's financial position. This funding will fuel the acquisition, which is expected to close by September 20, 2024.
With the Coyote acquisition, RXO is set to significantly boost its footprint in the logistics and freight brokerage market. Coyote’s proven technology platform and dedicated customer base make it a natural fit for RXO's growing logistics network. According to RXO, “we enter our next chapter with an even stronger balance sheet,” thanks to the upsized stock offering.
This acquisition also reflects a strategic shift for UPS, Coyote’s former owner. Coyote was originally acquired by UPS in 2015 for $1.8 billion. However, UPS is now offloading non-core assets to streamline its operations and focus on its core parcel business.
As the deal approaches closure, RXO is poised to enhance its service offerings, bringing Coyote's technology and expertise into its existing portfolio. Predictions are already made on how the market will fair as RXO’s expanded market reach will challenge other major 3PL players.
Source: LinkedIn\Jared Weisfeld
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