DALLAS, Nov. 18,
2019/PRNewswire –MODE Transportation (“MODE” or the
“Company”) and SunteckTTS Inc. (“SunteckTTS”), two leading multimodal third-party
transportation and logistics providers, announced today that they have entered
into a definitive merger agreement. Under the terms of the transaction, MODE
will acquire SunteckTTS, with both businesses operating under the MODE brand
name going forward. The Company will facilitate more than 1.5 million annual
customer shipments and generate over $2 billion of revenue.
The new Company will offer a broad range of capabilities across
all major modes of transportation including truckload, less-than-truckload,
rail intermodal, drayage, air, ocean and parcel freight. The Company will
leverage its increased scale and resources to continue investing in technology
and innovation for the benefit of its agent, shipper, and carrier communities.
Following completion of the merger, Jim Damman, President &
CEO of MODE, will serve as CEO of the Company and Ken Forster, CEO of
SunteckTTS, will serve as President & COO. The expanded leadership team
will include senior executives from both MODE and SunteckTTS.
“In today’s increasingly competitive logistics market, the importance of scale, service diversity, and technology cannot be overstated. The combination of MODE and SunteckTTS provides new and existing agents, shippers, and carrier partners a significantly enhanced platform positioned for the future,” said Ken Forster, CEO of SunteckTTS.
“We are very excited to announce this transaction with
SunteckTTS. Our two companies are built on a similar culture of outstanding
customer service. The addition of SunteckTTS’ robust agent, product and
customer base further strengthens MODE’s broad diversity of service offerings,
while continuing to position MODE as a premium provider of technology-driven
logistics,” said Jim Damman, CEO of MODE Transportation.
“This transaction represents an important milestone in
MODE’s history,” continued Damman. “A year ago, we launched an initiative to
identify strategic acquisition opportunities that would strengthen the MODE platform
and enable us to continue to improve the best-in-class service and capabilities
we provide to our customers. We look forward to welcoming SunteckTTS as we
continue to execute on this strategy going forward.”
The transaction is subject to customary closing conditions,
including regulatory approval, and is expected to close by the end of December.
MODE is a privately held portfolio company of funds
affiliated with York Capital Management. MODE received legal advice from Kirkland
& Ellis, LLP. SunteckTTS is a portfolio company of funds affiliated with
Comvest Partners, who will continue to own an interest in the company following
the completion of the transaction. SunteckTTS was advised by Piper Jaffray and McDermott
Will & Emery.
Founded in 1989, MODE Transportation is a leading North
American third-party transportation and logistics company. MODE serves more
than 3,500 customers across a diverse set of end markets and modes of
transportation. MODE has relationships with over 35,000 carriers and operates
from over 100 offices throughout North America. The Company is headquartered in
SunteckTTS operates as a multi‐modal transportation solutions
provider through a network of sales, operations and capacity specialists. The
company offers a business process outsource program through which independent
agents represent SunteckTTS in the freight transportation marketplace. This
agent network services shippers throughout the United States and Canada.
About York Capital
York Capital Management is a global private investment firm
that was established in 1991. The firm
manages approximately $18 billion in assets across public and private investment
strategies, including its private equity platform, the York Special
Opportunities Fund. York Capital employs approximately 60 investment
professionals and 200 total employees globally, primarily in New York, London
and Hong Kong.
About Comvest Partners
Comvest Partners is a private investment firm providing
equity and debt capital to middle-market companies across North America. Since
its founding in 2000, Comvest has invested over $4.7 billion. Today, Comvest’s
funds have over $3.7 billion of assets under management. Through our extensive
capital resources and broad network of industry relationships, we offer our
companies financial sponsorship, critical strategic and operational support,
and business development assistance.
For more information about MODE Transportation, visit www.modetransportation.com.