RXO Agrees to Buy UPS Unit Coyote Logistics for $1 Billion

<-rte-company state="{"_id":"00000190-4673-d497-a7fb-ee7fc0250000","_type":"00000160-4b23-d8bd-adfd-4b3348fd0000"}">RXO Inc. has agreed to buy United Parcel Service Inc.’s asset-light freight brokerage business, <-bsp-bb-link state="{"bbHref":"bbg://securities/4700921Z%20FP%20Equity","_id":"00000190-4673-d497-a7fb-ee7fc0250002","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Coyote Logistics, for more than $1 billion.

The deal will make RXO the third-largest provider of brokered transportation in North America.

The Charlotte, North Carolina-based company will fund the deal with a mix of equity and debt, including a $300 million equity investment from <-rte-company state="{"_id":"00000190-4673-d497-a7fb-ee7fc0280000","_type":"00000160-4b23-d8bd-adfd-4b3348fd0000"}">MFN Partners and a $250 million equity investment from <-bsp-bb-link state="{"bbHref":"bbg://securities/1377201D%20US%20Equity","_id":"00000190-4673-d497-a7fb-ee7fc0280001","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Orbis Investments, two of RXO’s largest shareholders, the company said Sunday in a statement.

“RXO will realize significant synergies from the acquisition by quickly integrating Coyote’s business into RXO and ...