Digital freight matching (DFM) startup Transfix has sold its brokerage business unit to the third party logistics provider (3PL) NFI Industries, saying the move launches a new chapter for the 11-year-old firm.
Terms of the deal were not disclosed.
Established in 2013, as one of the first tech-powered truckload brokerages, Transfix will now pivot its core business to focus solely on providing software and data solutions for brokers, shippers, and carriers, with NFI set to be the first third-party customer to utilize Transfix’s transportation management system (TMS).
According to New Jersey-based NFI, the Transfix team brings technology that will help strengthen NFI’s carrier and customer interactions and offer more robust brokerage solutions that will be coupled with NFI’s existing in-house technology. In addition, NFI will add over 15,000 carriers to its existing carrier network.
Founded in 1932, NFI today has $3.6 billion in revenue, 17,250 employees, and owns and operates over 70 million square feet of warehouse space alongside a dedicated fleet of 4,900 tractors and 13,700 trailers.
“We believe the Transfix TMS will be a game changer for us,” shared David Broering, President of Integrated Logistics Solutions at NFI. “This acquisition and ongoing partnership is a great opportunity to accelerate our digital approach while combining our operational strength with their technical expertise to create more value for our customers and carriers.”
The newly launched Transfix organization will initially go to market with an expansive SaaS feature suite designed to bring operational efficiency and transparency to various stages of the truckload lifecycle for freight brokers, shippers, and carriers, and to deliver significant reduction in processing cost, the firm said.
“As someone who grew up in the brokerage business, I am thrilled about the next chapter at Transfix,” Drew McElroy, co-founder and chairman of the board at Transfix, said in a release. “Opening up our decade of technological advancements to brokers industry-wide is set to create substantial value for brokers everywhere. I am also deeply appreciative of NFI’s commitment to advancing the industry by incorporating our technology and for welcoming many of our talented teammates.”
