Uber Freight to buy Transplace a shipping software company for $2.25B

 

On Thursday, San Francisco based Uber Freight, the ride hailing company’s trucking division said that it is buying Transplace, a shipping software company in a deal where the company is valued at $2.25 billion. Uber’s stock rose slightly on Thursday morning. Transplace is an asset of the TPG group since 2017.

 

The deal will include up to $750 million in Uber common stock and the rest would be in the form of cash. Uber said that it is planning a bond issue of $1.5 billion, before closing the deal; to fund the transaction’s cash part.

 

Last year, Uber had slimmed down assets that were losing money including its driving unit and its flying taxi unit. Instead, it was making huge investments in segments that were seeing fast growth such as Uber Eats. It strengthened Uber Eats by acquiring Drizly, an alcohol delivery company and Postmates, a food delivery service.

 

Uber Freight’s booking yielded $301 million in revenue in Q1 of 2021. This is a 51 percent increase year over year. The company said that it could reach profitability after its deal with Transplace after an adjusted EBITDA basis by the end of next year.

 

In an interview with CNBC’s TechCheck, Uber Freight chief Lior Ron said that the deal would bring digital transformation to the freight industry, continuing the company’s long-term vision.

 

Transplace, based in Dallas, produces software that aids in the management of companies supply chains to ship goods. It says that it is one of the largest global software platforms for supply chain management and logistics. Uber freight also offer tools for supply chain management and shipping. This joint partnership will extend the rideshare company’s freight business in the U.S. domestic shipping industry.

 

Uber Freight contributes a small portion to San Francisco based giant Uber, whose revenues come mainly from its ride hailing and food divisions. However, with this merger, the company could grow not just as a market leader but as a profitable one as Transplace has a few giant customers including Colgate-Palmolive, Del Monte, Eaton and more. The deal has yet to receive regulatory approval.

Image Stock Catalog

 

Click Here For Full Stock Research on UBER  by CWEB


Follow us on Google news for more updates and News










PLEASE READ THE IMPORTANT DISCLOSURES BELOW.

This content is being provided to you for informational purposes only. The content has been prepared by third parties not affiliated with CWEB Inc, a business. This content and any information contained therein, does not constitute a recommendation by CWEB to buy, sell or hold any security, financial product or instrument referenced in the content. This information neither is, nor should be construed as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. CWEB Inc. does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

Unless stated otherwise, the web content provided by the CWEB family of companies is for educational purposes only. The information and tools provided neither are, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. or its affiliates. Unless stated otherwise, no information presented constitutes a recommendation by CWEB Inc. or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy.

Full Disclaimer


>