Uber Technologies has announced plans to acquire Transplace, a logistics company currently valued at $2.25-billion and owned by TPG Capital.
Transplace was created in 2000, with contributions from some of the largest trucking companies in the world before it was acquired in 2017 by TPG Capital.
According to the San-Francisco-based company, the new deal is also designed to help Uber’s freight arm break-even much sooner. Uber Freight is expected to turn in its first adjusted earnings before interest, taxes, and other expenses by the end of next year. Last year, the logistics unit made $995-million in revenue.
As part of the deal, TPG Capital will receive as much as $750-million in Uber stock and the rest in cash. The transaction is expected to close later this year or in the first half of 2022, according to a company presentation detailing the acquisition.
Uber ventured into logistics service in 2016 when it acquired Otto, a startup developing technology for self-driving trucks. Uber has since dropped its plans into self-driving vehicles but has kept its freight wing. Uber Freight pairs trucking companies with those seeking to transport loads, with the company planning to expand its logistics to smaller freight loads.
Uber says that Transplace’s acquisition will help attract more customers to its logistics, especially in Mexico.
