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Uber to Buy Logistics Company Transplace for $2.25 Billion

Uber Technologies agrees to purchase Transplace, a transportation management company, for $2.25 billion.
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Ride-hailing company Uber Technologies  (UBER) - Get Report announced Thursday that it has agreed to purchase Transplace, a transportation management company, for $2.25 billion.

Uber’s Uber Freight division is the purchaser. The payment includes $750 million in Uber stock and the remainder in cash.

Uber Freight will acquire Transplace from TPG Capital, the private-equity platform of alternative asset firm TPG. TPG Capital bought Transplace in 2017.

“The demands of a volatile market and the increasing complexity of globalized logistics are clashing with industrial-age transportation technology,” Uber and Transplace said in a joint press release Thursday.

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“In the midst of capacity constraints and escalating transportation costs, shippers are adapting their operations at an increasing pace and looking for technology, support, and solutions that can modernize their supply chain and keep critical goods, and the economy, moving," the companies added.

Uber expects the deal to accelerate Uber Freight’s path to profitability and help the segment to break even on an adjusted EBITDA basis by the end of next year.

Uber traded at $47.61, up 0.19%. The stock has slumped 15% over the past six months.

In June, TheStreet's Jim Cramer said he would rather own DoorDash  (DASH) - Get Report than Uber.

Uber is "caught between a rock and a hard place, because DoorDash is really coming after them when it comes to Uber Eats,” he said.