Banking

Uber To Buy Transportation Logistics Company Transplace For $2.2 Billion

The trucking division of Uber Technologies (UBER) on Thursday announced it will acquire transportation logistics company Transplace in a cash-and-stock deal valued at $2.2 billion. Uber stock dipped.




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Transplace is being sold by private equity firm TPG Capital, which it acquired in 2017. The deal will consist of $750 million in Uber stock and the rest in cash.

Uber stock was down a fraction, near 47.50, during morning trading on the stock market today.

The deal will create one of the leading logistics technology platforms, Uber said. The companies said the acquisition comes at a time of accelerated transformation in logistics.

“The acquisition will combine the world’s premier shipper network platform with one of the industry’s most innovative supply platforms, to the benefit of all stakeholders,” Transplace Chief Executive Frank McGuigan said in written remarks with the announcement.

Uber expects the deal to help its trucking division reach profitability.

Uber is in the midst of a dramatic turnaround, as the company fights to turn a profit. For 2020, the company lost $3.86 a share. Analysts predict a loss of $1.28 a share in 2021, according to IBD data.

According to the IBD Stock CheckupUber stock has a weak 26 out of a highest-possible 99 IBD Composite Rating.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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