XPO Logistics Agrees to Acquire NLM for $87M in Cash

XPO Logistics

today announced that it has entered into a definitive agreement with Landstar System, Inc. to acquire NLM, the largest provider of web-based expedited transportation management in North America. A second technology product, A3i, is included in the planned acquisition. The acquisition is expected to be immediately accretive to earnings, exclusive of any synergies with the company's existing expedite business. NLM is the market leader for web-managed services for the expedite sector, where freight typically needs to be moved within a short timeframe and with absolute reliability. NLM's proprietary online auction system allows carriers to bid on loads that are then awarded electronically, generating a transaction management fee for NLM. The purchase price is $87 million in cash, subject to working capital adjustment. The company expects to acquire at closing cash in the amount of $10 million to $13 million. The transaction is expected to close by mid-January 2014, subject to Hart-Scott-Rodino clearance and customary