The deal allows C.H. Robinson to consolidate its position as the biggest freight brokerage, with CEO John Wiehoff pointing to Freightquote’s strength in e-commerce.
The freight brokerage and third party logistics provider C.H. Robinson on Monday said it has acquired the internet-based broker Freightquote.com for $365 million in cash.
Kansas City-based Freightquote is privately-held and provides services throughout North America. The company has projected 2014 gross revenues of approximately $623 million, with projected net revenues of $124 million and adjusted before-tax earnings of approximately $34 million.
“Freightquote is a high quality, innovative, growth company that brings a proven model serving smaller businesses,” said John Wiehoff, C.H. Robinson’s chairman and chief executive officer. “Its proprietary e-commerce technology allows shippers to easily access competitive rates, and automated load acceptance and payment functionality. E-commerce is going to be a bigger part of future supply chain services, and Freightquote brings us a leading solution in our industry.”
Wiehoff added that Freightquote brings synergies to C.H. Robinson’s less than truckload and truckload businesses, and its technology team provides expertise in developing an e-commerce store front experience.
“With the addition of Freightquote, we will increase our market share with small businesses and significantly expand our presence in the Kansas City market,” said Scott Satterlee, C.H. Robinson’s senior vice president of North America surface transportation. “Freightquote will operate as one of our flagship operations in Kansas City, and we plan to continue to aggressively grow the operations there.”
Freightquote was founded in 1999 by Tim Barton, and has 1,000 employees and roughly 80,000 customers between its truckload, LTL and intermodal segments. Barton will serve as a consultant to Freightquote following the closing of the acquisition.
“We spent a long time looking for the right strategic partner and are pleased to join the C.H. Robinson organization,” Barton said. “The two companies complement each other, and together, we are well positioned for success into the future.”
The agreement is subject to certain customary closing conditions, including regulatory approval. Closing of the acquisition is expected to occur in the first quarter of 2015. C.H. Robinson said it will likely increase its existing revolving credit facility to finance the acquisition.
C.H. Robinson acquires internet-based broker Freightquote
