RXO acquires UPS's Coyote Logistics for $1.025B to become #3 North American freight broker

RXO, Inc.

Purchase price $1.025B cash; deal expected to close by end of 2024, subject to HSR and customary conditions.
Acquired business 2023 revenue ~$3.2B, gross margin ~$470M, adjusted EBITDA ~$86M; annual cost synergies of at least $25M.
Financing: $550M equity from MFN Partners and Orbis Investments, plus $1.1B bridge loan from Goldman Sachs; leverage-neutral.
Transaction immediately accretive to adjusted diluted EPS and adjusted free cash flow; Q2 2024 EBITDA outlook reaffirmed at $24-30M.
UPS contract for brokered transportation extends through January 2030.

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