Courtesy of Benzinga
MODE Transportation announced it has completed the acquisition of SunteckTTS Inc. The deal was previously announced on Nov. 18. The financial terms of the transaction have not been disclosed.
The combination of the two multimodal third-party transportation and logistics providers is expected to generate more than 1.5 million customer shipments and $2 billion in revenue annually.
“MODE and SunteckTTS together will create one of the strongest and most customer-focused multimodal 3PLs in the industry. We are excited to leverage our combined talent and expertise to bring an enhanced suite of capabilities and creative solutions to our customers, agents and carriers,” said MODE Transportation CEO Jim Damman.
The combined entity is expected to benefit from increased scale and resources and plans to continue investment in technology and innovation across all major transportation modes, including truckload, less-than-truckload, rail intermodal, drayage, air, ocean and parcel freight.
“Since the announcement of the combination of MODE and SunteckTTS, we have received overwhelmingly positive feedback from our employees, agents, carrier partners and shippers. We are excited about our new team and capabilities and look forward to integrating our platforms and gaining the benefits of this industry-changing transaction,” said MODE Transportation’s new chief operating officer, former SunteckTTS CEO Ken Forster.
MODE Transportation, founded in 1989, is headquartered in Dallas. The 3PL operates out of more than 100 offices throughout North America, serving over 3,500 customers and 35,000 carrier relationships. The company is privately held through funds affiliated with global private investment firm York Capital Management.
SunteckTTS provides multi-modal transportation solutions through a network of sales, operations and capacity associates. The company’s agent-based model serves shippers in the U.S. and Canada. SunteckTTS is backed by funds affiliated with private investment firm Comvest Partners. Comvest reiterated its plans to retain an interest in the company after the merger.
Kirkland & Ellis LLP advised MODE. Piper Jaffray and McDermott, Will & Emery advised SunteckTTS.
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