UPS sells Coyote Logistics for over $1 billion to RXO

United Parcel Service (UPS) has sold its truckload brokerage business Coyote Logistics to RXO, Inc. (RXO) for $1.025 billion. In a press release, UPS CEO Carol B. Tomé discusses UPS's focus in the sale by claiming "UPS positions itself to become the premium small package provider and logistics partner in the world."

Yahoo Finance's Jared Blikre and Madison Mills break down the latest development for UPS and what it means for the freight delivery company.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino

Video Transcript

Because UPS has agreed to sell its freight brokerage business, Coyote logistics to Rx.

So that's going to be for over a billion dollars.

And Ups had originally paid 1.8 billion to purchase this company back in 2015.

So we've got another deal here.

What do we know?

Yeah, and I got some analysts, let me just jump straight to the commentary there, Barclays which rates the stock in overweight saying that the deal looks favorable from a valuation and commercial perspective for our.

Then we have Jeffries with a buy saying that this deal adds significantly to Rx's scale um supplement.

I can say that they're going to be about the third largest broker of their type in the US.

And then we have Bloomberg Intelligence saying this transaction will make North America's third largest freight broker.

So there you go.

That's where that statistics come from.

And uh Bloomberg also noticing that the purchase price was a little bit lower than what they would have expected.

1.4 to 1.8 billion.

You mentioned that they paid UPS paid 1.8 billion in 2025.

So maybe it's looking like a deal.

Now, let's go to the Wi Fi Interactive one more time where I'm in a chart.

Uh, this is the, uh, one year price action.

Let me show you year today.

This is interesting.

You can see we're kind of in the weeds here, uh, in the red here until today.

And now, uh, with this, with this bump up of about 18% finally in the green for the year, uh, let me just put a max chart on.

You can see this is a company that recently lifted listed within the last couple of years.

You can see it is now close to its all time high there and I'll just show you a UPS chart as well.

This goes back over 20 years, but just to show you that UPS is, uh, significantly off of its highs from a couple of years ago as well, Mattie.

All right, Jared.

Thank you so much as always for bringing us those market moves.

We really appreciate it.