Monday, July 22, 2024

Transfix sells brokerage unit to NFI

Transfix announced Wednesday the sale of its brokerage unit to NFI. Transfix will now focus solely on its transportation software and data offerings.

No financial details were provided, but Transfix said its remaining SaaS business will continue to cater to brokers, shippers and carriers. It also announced that NFI will be the first third-party customer of its proprietary TMS: Transfix Intelligent Freight Platform.

Camden, New Jersey-based NFI generates more $3.5 billion in annual revenue from a variety of supply chain services, including dedicated transportation, distribution and warehousing. It has also amassed a large port drayage business through acquisition. The company has more than 16,800 employees, 70 million square feet of warehousing space, and a fleet of 4,900 tractors and 13,700 trailers.

NFI said the deal adds more than 15,000 carriers as well as Transfix’s technology and expertise to its brokerage network. No details were provided on the number of Transfix employees who will transition to NFI. However, a separate statement from Transfix read, “Our people and our customers will be in excellent hands at NFI. They are excited to welcome many of our Transfixers aboard, and I will be cheering them on from the sidelines.”

NFI CEO Sid Brown said in a news release: “Their experienced team provides an exceptional solution that aligns well with our strategy. We look forward to partnering with their customers and enhancing the experience for our current portfolio.”

Brown said NFI will now be able to cross-sell its offerings to the Transfix customer base. 

New York-based Transfix is a 2013 startup that quickly became one of the largest digital freight brokerages in the nation. The company is now focused on marketing its TMS, which leverages automation and machine learning to lower shipping costs for hundreds of customers.

“NFI was the perfect cultural and operational fit for our customers, carriers, and team,” said Jonathan Salama, co-founder and CEO at Transfix. “And now, with this acquisition, we’re able to expand our best-in-class solutions that have powered our business for over a decade to our peers in brokerage.”

Transfix eyed a public listing two years ago but opted to remain private as market conditions deteriorated. At the time, the special purpose acquisition company combination was expected to garner a valuation as high as $1.1 billion.

The company closed on a $40 million funding round led by New Enterprise Associates and G Squared in October. That allocation was designed to improve its financial position and provide “a path to profitability” during “one of the most challenging markets in freight history.” The round brought the company’s total funding to $125 million.

“Opening up our decade of technological advancements to brokers industry-wide is set to create substantial value for brokers everywhere,” said Drew McElroy, Transfix co-founder and chairman. “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.”

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