Freight broker and third-party logistics provider (3PL) Echo Global Logistics Inc. has agreed to be acquired for $1.3 billion by private equity firm The Jordan Company L.P. (TJC), which also owns holdings in a handful of other logistics and transportation sector firms.
The acquisition is subject to customary closing conditions, and is expected to be completed in the fourth quarter. Echo will then become a private company with additional resources and greater flexibility to continue to build its technology and data science platform and to enhance its value proposition to shippers and carriers, the firm said.
More specifically, Echo’s chairman and CEO, Doug Waggoner, said the deal will provide it with the financial backing to fund continued growth, resulting in a more rapid expansion of Echo's supply chain capabilities, including all of the automation planned to enable both its employees and its digital freight marketplace.
The deal is TJC’s latest investment in the logistics sector, following the purchase of ownership stakes in the freight forwarder AIT Worldwide Logistics, the freight brokerage Load Delivered Logistics, and the logistics IT provider Logistical Labs. TJC has also owned previous holdings in the 3PLs GlobalTranz Enterprises LLC and Capstone Logistics LLC.
"We are impressed with Echo's people, technology, and business results, since their founding in 2005, and are excited that Echo's leadership selected TJC as their partner in this recapitalization," Brian Higgins, the head of TJC's logistics and supply chain vertical, said in a release. "We strongly support the team's vision for continued growth and look forward to partnering with them as we bring expanded financial resources and expertise to accelerate Echo's technology leadership that has set the company apart from its competitors."