Convoy Inc. has found a buyer for its tech stack, which would include the digital freight company’s driver app and automated freight matching and pricing engines, according to a person familiar with the matter.
The source confirmed the deal but declined to identify the buyer, citing confidentiality issues. Dan Lewis, Convoy’s co-founder and CEO, posted on LinkedIn on Wednesday morning that he was working on a deal that will include the company’s “tech/services” and members of the Convoy team.
Read more: Death from overfunding: An obituary for Convoy
The Seattle Times first reported news of the impending sale.
FreightWaves reported last week that at least two large incumbent logistics providers were bidding on Seattle-based Convoy’s tech stack, which would include the engineering and product teams that support the software. Its driver app has a large installed base, while sophisticated auctioneering algorithms on the back end kept freight moving across the country with a minimum of human intervention.
Over the years, Convoy built software for small fleet dispatchers and transportation management system portals for its customers in order to bring as much of the transaction on-platform as possible so that it could be automated.
The company announced last Thursday that it shut its freight brokerage arm, laying off all employees associated with that part of the business. It was reported that Convoy would retain some employees to assist with managing the transition of its IT operations.
This is a developing story.
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Ivan from CH
Convoy had the best tech in freight by a lot. As more details have leaked out, that has become even more clear. But they never understood how to sell to run a real freight business.
If JB Hunt or CH buys them, will they have the best of both worlds and do wehat Convoy couldn’t do on their own???
Flock
I wonder how much Flock Freight will get for their tech when they shutdown?
Astros
Rob, you think it’s Emerge the freight broker?
CON-VOY
First they layoff 99% of their staff abruptly and “cease operations” out of nowhere without severance and only 2 weeks of healthcare benefits. The stock options are virtually worthless and “suddenly” they found a buyer. Disgusting.
Severance?
Does that mean they’ll provide severance to their workers?
Rob Bivens
Wouldn’t be surprised if it was Emerge and they will bolt this on to the existing procurement and sourcing system they have.
Bye Bye Convoy
At this point literally NO BODY CARES.
Convoy was a terrible company anyways, Happy they went under.
Astros
Will they get $920,000,000 for it?