Flexport Acquires Convoy's Tech Amidst Broader Expansion Goals
In a pivotal move for the logistics industry, Flexport announced its acquisition of the technology stack from Convoy, a once-valued $3.8 billion freight brokerage that unexpectedly shut down on October 19th.
The acquisition discussions, initially reported on Wednesday, culminated in Flexport’s strategic decision to further consolidate its position as a dominant force in global logistics. Flexport’s CEO, Ryan Petersen, highlighted the deal’s significance in a recent communication. “Thanks to this acquisition, Flexport is poised to realize its ambition of becoming a true one-stop-shop, capable of shipping any product, to any location worldwide,” Petersen stated.
While the specifics of the agreement remain under wraps, it’s confirmed that a handful of Convoy’s employees will be integrated into the Flexport team. It’s worth noting that this acquisition is solely for Convoy’s technology and does not encompass the company’s liabilities.
In an optimistic note for Flexport’s clientele, Petersen announced the imminent reintegration of Convoy’s vast trucking network. This network, accessible to Flexport, comprises an impressive 400,000 truck drivers and 80,000 carriers.
The closure of Convoy, just 18 months post a staggering valuation in its final funding round, has certainly sent ripples across the industry. However, with this acquisition, Flexport aims to transform this turn of events into an opportunity for expansive growth. See Petersen’s full memo here.
