German freight-shipping unicorn Zehnder is on a roll. The company announced on Tuesday that it is acquiring logistics giant C.H. Robinson's European ground transportation assets in an all-cash deal. Financial terms of the deal were not disclosed, but a source close to the company told TechCrunch that the deal is valued at about the same as Zehnder's acquisition of Uber's European freight business in 2020.
The deal was an all-stock transaction and was rumored to be worth around €900 million at the time.
C.H. Robinson is estimated to be the second largest logistics company in the world after Amazon, with a market capitalization currently exceeding $10 billion. The acquisition is expected to double Sender's annual revenue to €1.4 billion (i.e., its current revenue is €700 million plus €700 million from the acquired business). The combined business will have 1,700 employees across 20 markets, putting Sender in the top five providers of so-called “full truckload” services in Europe.
Notably, this is Sendder's second scoop on CH Robinson's business: In May, the company poached the company's engineering chief, Kollen Glynn, as its new CTO.
Sennder has also made other acquisitions to expand its vehicle fleet and overall footprint: in 2021, it bought Netherlands-based Cars&Cargo, also for an undisclosed price.
These two acquisitions came at a time when the e-commerce and technology markets overall were at their peak, as the coronavirus pandemic led consumers to continue working from home, spend more time online and buy goods and services online rather than in person.
All of this contributed to Sennder's two rapid rounds of funding: the company raised $160 million in January 2021 and another $80 million in June 2021, bringing its valuation to over $1 billion.
Many parts of the technology sector, including e-commerce, are currently operating under tougher conditions, which makes Sennder's latest acquisition all the more interesting. It highlights a larger consolidation movement we've been tracking across multiple sectors, with companies with excess cash (or coveted equity) snapping up assets to gain greater economies of scale, while others are downsizing (and selling assets) to reduce operational costs while focusing on their core competencies.
The deal is expected to close in the fourth quarter of 2024, following regulatory approval. While it may not seem like a typical venture fundraising, we understand that the separate fundraise is one of the “strategic options” Sennder is considering. Sennder's current investors include Baillie Gifford, Hedosophia, Accel, Lakestar, HV Capital, Project A and Scania.
“As of today, we don't have any immediate need for new funding,” Sennder CEO David Nothacker told TechCrunch, “But our new scale creates some very different opportunities that we'll be exploring in the coming months. We want to keep investing and keep growing. We have big plans.”
“This acquisition will be pivotal in advancing Sennder's roadmap. With a vision to accelerate global trade to deliver the products and goods that drive the global economy, CH Robinson is highly aligned with Sennder's mission and values of building an efficient and sustainable European ground freight network,” Nothacker said in a statement. “We are deeply impressed with CH Robinson's European ground transportation team and believe that the combined business and enhanced talent pool of our two companies will enable us to achieve significant growth and operational scale, accelerate our expansion in Europe, and increase our network density and digital capabilities to benefit carriers, shippers and the industry as a whole. We are excited to welcome the EST team and embark on the next chapter of Sennder's journey.”
This story has been updated with additional comments from the CEO on Sennder's fundraising plans.
