Echo Global Logistics announced Wednesday that it has completed the acquisition of ITS Logistics, creating an AI-enabled 3PL with over $5 billion in annual revenue. The deal merges two of the industry’s largest brokerage platforms, broadening the scope of transportation service offerings for both companies.
Financial terms of the transaction were not disclosed. Chicago-based Echo announced in January that it had entered into an agreement to acquire Reno, Nevada-based ITS.
“Adding ITS to Echo helps us execute our vision of becoming a full supply chain solution by leveraging people and technology with solutions that deliver for our shippers,” said Echo CEO Doug Waggoner in a news release.
Founded in 1999, ITS is known for its drop-trailer and trailer pool capabilities, as well as its broad offering of container management, drayage and intermodal services. It also provides dedicated truckload capacity, omnichannel distribution and fulfillment, and other supply chain services.
“Combined with Echo’s advanced technology, automation, and expanding use of AI across our operations, this strengthens our ability to deliver smarter, more reliable solutions for customers while continuing to scale the range of services we provide,” Waggoner said.
Founded in 2005, Echo has grown through a series of acquisitions, transforming from a non-asset-based TL brokerage into a diversified transportation and logistics provider. The company’s proprietary tech platform uses automation, machine learning and AI to optimize transportation, improve visibility and simplify supply chain functions.
Echo has more than 60 locations across North America, specializing in freight brokerage and managed transportation services for all major trucking modes and less-than-truckload, intermodal and cross-border transportation. It also has extensive warehousing capabilities.
“By combining ITS’ differentiated logistics capabilities with Echo’s technology and scale, we are well-positioned to bring even greater value and expanded solutions to our customers,” said ITS CEO Scott Pruneau.
The two companies combined to generate $5.2 billion in revenue last year.
Echo was taken private in 2021 by The Jordan Company in a deal valued at $1.3 billion.
Goldman Sachs was Echo’s lead financial adviser on the deal, with UBS Group also acting as a financial adviser. J.P. Morgan was the lead adviser to ITS, with Jefferies also acting as a financial adviser.
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