RXO Agrees to Buy UPS Unit Coyote Logistics for $1 Billion

RXO Inc. has agreed to buy United Parcel Service Inc.’s asset-light freight brokerage business, Coyote Logistics, for more than $1 billion.

The deal will make RXO the third-largest provider of brokered transportation in North America.

The Charlotte, North Carolina-based company will fund the deal with a mix of equity and debt, including a $300 million equity investment from MFN Partners and a $250 million equity investment from Orbis Investments, two of RXO’s largest shareholders, the company said Sunday in a statement.

“RXO will realize significant synergies from the acquisition by quickly integrating Coyote’s business into RXO and ...