Subscribe to our free, weekly email newsletter!


Echo Global Logistics acquires Open Mile Inc.

By Jeff Berman, Group News Editor
March 21, 2013

Echo Global Logistics, a Chicago-area non-asset based freight brokerage and a provider of technology-enabled transportation and supply chain management services, said this week it has acquired Boston, Mass.-based truckload brokerage Open Mile Inc.

Financial terms of the deal were not disclosed. This marks Echo’s 16th transaction since 2007, and it is its second one involving a New England-based company in the last year. In June 2012, it acquired Purple Plum Logistics LLC, a Wakefield, Mass.-based temperature-controlled truckload transportation brokerage.

“Open Mile has developed leading edge, cloud-based technology that successfully automates many of the manual tasks of transportation management,” said Douglas R. Waggoner, Chief Executive Officer of Echo Global Logistics.  “The acquisition of Open Mile enhances the technology solutions we offer clients and carriers while also expanding our client base, sales force and carrier network in the Northeastern United States.”

Established in 2010, Open Mile is a non-asset based transportation service provider, focusing on truckload brokerage, that provides high-tech automation with freight management expertise, according to Echo officials.

In an interview with LM, Echo CFO Dave Menzel said Open Mile had been on Echo’s radar for a while in recent years as it was raising venture capital money in the Boston area and making investments into truckload-based technology.

“We became aware of the fact that they were looking for a strategic alternative a few months ago so we took a deeper dive and liked what we saw and completed the acquisition,” said Menzel.

Open Mile’s carrier-related truckload technology was of significant interest to Echo, explained Menzel. This technology includes advanced truck tracking via a cellphone system that allows a broker to know where a truck is at any given time, which he said will be of significant value to Echo customers.

And he also cited Open Mile’s technology, which helps it to automate how it works with truckload carriers, which will help Echo provide additional value to its 24,000-plus truckload carrier network through more automation and increased ease of doing business. 

Menzel declined to disclose how many truckload carriers are in Open Mile’s carrier network. But he did say that its carrier base is almost exclusively focused in the Northeast.

“It is a niche they have in terms of handling freight within the Northeast corridors and building relationships that support that,” said Menzel. “It is more geographic in nature.”

Open Mile has 27 employees, according to Menzel.

With a detailed acquisition history in recent years, Menzel said Echo has been focused on organic growth, with acquisition targets tending to be smaller in size, while integrating them onto the Echo platform and subsequently growing in their own right post-acquisition.

Echo reported Non-GAAP net income of $3.5 million and Non-GAAP fully diluted EPS of $0.15 per share in the fourth quarter of 2012 and total revenue was $211.2 million, an increase of 29.7% from the fourth quarter of 2011.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Clean Cargo Working Group (CCWG) has released a report indicating that in 2014 average CO2 emissions in the global container shipping trades declined 8.4 percent from the year before.

UPS Freight, the less-than-truckload (LTL) subsidiary of UPS, recently announced it has rolled out a new service center facility in Franklin Park, Illinois. This is the company’s fifth Chicago-area service center along with other ones in Aurora, Chicago, Palantine, and South Holland.

Putting the renewed strength in the truckload market into a very positive perspective is a report issued by Avondale Partners analyst Donald Broughton, which was released yesterday. Entitled, “Q2’15 Trucking Capacity; Goldilocks Era Continues,” Broughton explained that in the second quarter only 70 truckload fleets failed, or exited the business. That number may seem high to some, but it is not, especially when you consider that the second quarter of 2014 saw more than five times as many truckload carriers, 375 to be exact, exit the business.

Global demand remains stable as packaging equipment providers of all sizes shift focus

Six straight days without a ship waiting for berth

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA