GREENWICH, Conn. (AP) — Freight management company XPO Logistics Inc. said Wednesday that it has agreed with trucking operator Landstar System Inc. to acquire its supply chain company NLM for $87 million.
The technology product A3i also is included in the deal. XPO said it expects the acquisition to immediately boost its earnings.
NLM provides web-managed services that help move freight quickly and reliably. It uses an online auction system to let carriers bid on loads that are then awarded electronically. In exchange, it receives a transaction management fee.
XPO will pay $87 million in cash for NLM, but expects to acquire $10 million to $13 million in cash at closing.
The deal is expected to close by mid-January. XPO expects to fund the deal with available cash on hand, including the acquired cash, along with existing debt. XPO is based in Greenwich, Conn.
Also on Wednesday, Landstar said its board declared a special one-time dividend of 35 cents. The dividend will be paid on Jan. 16 to shareholders of record as of Dec. 27. The company also boosted its stock buyback program to 3 million shares.
Shares of Jacksonville, Fla.-based Landstar finished at $55.32 per share on Tuesday, while XPO Logistics ended that day at $22.57.