Logistics Company Sheds Former Freight Technology Platform After Two-Year Integration

Flexport Sells Former Freight Unicorn Convoy’s Tech Two Years After Buying It

In a surprising move, logistics company Flexport has announced the sale of its former freight technology platform, Convoy, to DAT Freight & Analytics. The deal comes just over two years since Flexport acquired Convoy and integrated it into its own operations.

According to sources close to the matter, the sale marks a massive return on investment for Flexport, which had previously acquired the assets of Convoy in 2023. At the time, the acquisition was seen as a strategic move by Flexport to expand its offerings and strengthen its market position in the freight industry.

In an official statement, Flexport CEO Ryan Petersen praised the sale, stating that the company’s efforts to rebuild and relaunch the Convoy platform had paid off handsomely. “We’re thrilled to announce the sale of Convoy’s tech, which has not only delivered a massive return on investment for Flexport but also enabled us to focus our capital and energy on our core business of helping customers move freight around the world,” he said.

While terms of the deal were not disclosed, industry insiders suggest that the sale could be worth hundreds of millions of dollars. The exact figure remains unclear, as both parties have chosen to keep the details private.

Flexport’s decision to sell Convoy comes at a time when it is shifting its focus towards developing new AI-powered tools and expanding its product offerings. This move is seen as an attempt by the company to reposition itself in the market following recent layoffs within the organization.

The deal marks the end of an era for Convoy, which was once hailed as a freight unicorn due to its promising early growth and potential to disrupt the industry. Despite having secured significant funding and attracting high-profile investors, the startup ultimately failed to achieve its lofty ambitions and was subsequently acquired by Flexport in 2023.

The sale of Convoy’s tech is likely to spark renewed interest in the logistics sector, which has seen a flurry of activity in recent months.

Source: techcrunch.com