In a move designed to beef up its online services and increase its small business customer base, CH Robinson has announced that it is to acquire Freightquote.com for US$365m in cash. The deal, which is subject to regulatory approval, is expected to be concluded in the first quarter of 2015 and will be financed by CH Robinson increasing its existing revolving credit facility.
Founded in 1999 by Tim Barton, Freightquote is one of the largest internet-based freight brokers in the US. Headquartered in Kansas City, Missouri with approximately 1,000 employees, the company provides truckload, less than truckload and intermodal services to approximately 80,000 customers.
CH Robinson’s chairman and CEO John Wiehoff said with e-commerce set to play a bigger part in future supply chain services, the deal would bring synergies to the company’s less than truckload and truckload businesses as well as a talented and experienced technology team.
“Freightquote is a high quality, innovative, growth company that brings a proven model serving smaller businesses. Its proprietary e-commerce technology allows shippers to easily access competitive rates and automated load acceptance and payment functionality,” he said. “Along with its track record of success, Freightquote has an established brand, a talented management team, excellent people, and a performance-based company culture.”
Scott Satterlee, CH Robinson’s senior vice president of North America Surface Transportation, said the acquisition would increase the company’s market share with small businesses and significantly expand its presence in the Kansas City market.
“We have built our business over decades by providing unparalleled service to all types of customers and we are honoured to add this strong organsation dedicated to that same strategy. Freightquote will operate as one of our flagship operations in Kansas City and we plan to continue to aggressively grow the operations there,” Satterlee said.
Tim Barton, executive chairman of Freightquote, will serve as a consultant to Freightquote following the closing of the acquisition.
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