Uber Technologies will pay $2.25 billion to acquire Transplace, a logistics company currently owned by TPG Capital.
The new acquisition represents the company’s largest investment in the trucking and logistics industry to date.
Transplace was founded in 2000, with funding from some of the world’s largest trucking companies. It was acquired by TPG Capital in 2017, and it is now being sold to Uber.
Transplace’s logistics division made $77 million in profit last year and is expected to make more than $100 million in 2021.
According to Uber, the acquisition will help the company’s freight division break even faster.
The logistics unit generated $995 million in revenue last year.
TPG Capital will receive up to $700 million in Uber stock and the remainder in cash as part of the agreement. According to Uber the acquisition is expected to close later this year or in the first half of 2022.
Uber claims that the purchase of Transplace will help it gain new clients, particularly in Mexico.