Convoy discussing tech sale with 2 active bidders

FreightWaves has learned that at least two large incumbent logistics providers are actively bidding on Convoy’s tech stack, which would include the engineering and product teams that support the software. Such a play could make sense for any number of 3PLs or asset-based carriers that either want access to the installed base of Convoy’s driver app or some of the most advanced automated matching and pricing engines in the industry. 

Convoy employees on Thursday morning were given official notice that the freight brokerage arm of the company was shutting down — loads had been canceled, tenders rejected and freight given back to customers. Salespeople, brokers and operations teams learned they were losing their jobs to a combination of freight market volatility and monetary conditions.

But incumbent logistics companies have long recognized the value in Convoy’s technology: Its driver app has some of the widest adoption of any in the industry, and sophisticated auctioneering algorithms on the back end kept freight moving across the country with a minimum of human intervention. Over the years, Convoy has built software for small fleet dispatchers and transportation management system portals for its customers in order to bring as much of the transaction on-platform as possible so that it can be automated.

It’s unclear exactly how Convoy’s software, which was largely unmonetized, would be valued, but FreightWaves has heard that multiple logistics providers, including Maersk (DXE: MAERB.C.DX) and UPS (NYSE: UPS), have taken a look at the technology platform as a potential strategic asset. 

Current parties to the acquisition discussion were not disclosed, but more news is expected over the next week.