Uber Technologies’s Freight unit is buying technology-focused logistics services provider Transplace in a cash and stock deal worth about $2.25bn that extends the ride-hailing giant’s reach into the U.S. domestic shipping sector.
Uber reached an agreement to acquire Dallas-based Transplace from TPG Capital, the private-equity arm of investment firm TPG. Under the agreement, Uber will pay up to $750m in common stock of Uber Freight’s parent company and the rest in cash to TPG Capital.
Uber said it plans to finance the approximately $1.5bn cash portion of the transaction with a bond issue before the deal closes.
Subscribe to our Newsletter to increase your edge. Don’t worry about the news anymore, through our newsletter you’ll receive weekly access to what is happening. Join 120,000 other PE professionals today.
The acquisition comes as San Francisco-based Uber is seeking to bulk up delivery operations beyond its core ride-hailing operations built on its app matching people to a fleet of drivers, a business that has taken a hit as the Covid-19 pandemic has upended travel and consumer behavior.
The company earlier this week announced the latest expansion of its Uber Eats food-delivery business with an extension of grocery delivery across the U.S. under an agreement with supermarket chain Albertsons Cos.
Source: Wall Street Journal
Can’t stop reading? Read more
KKR acquires Australia’s Zenith Energy in $1.1bn deal to target energy transition growth
KKR acquires Australia’s Zenith Energy in $1.1bn deal to target energy transition growth KKR has...
Harvard lab secures $39m private equity lifeline from İşbank arm to launch biotech venture
Harvard lab secures $39m private equity lifeline from İşbank arm to launch biotech venture İş...
Private credit boom lures ultra-wealthy as PE sentiment cools, says BlackRock
Private credit boom lures ultra-wealthy as PE sentiment cools, says BlackRock BlackRock reports...