Echo Global Logistics acquires Open Mile Inc.

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.

By ·

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, 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. Contact Jeff Berman

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!

Latest Whitepaper
The Internet of Things and the Modern Supply Chain
Learn today how the internet of things is transforming supply chain operations.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...