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.
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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
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