C.H. Robinson Worldwide has agreed to acquire freight broker RXO in a $5.8 billion cash-and-stock transaction, creating a combined logistics company with an enterprise value exceeding $25 billion.
RXO shareholders will receive $17.25 in cash plus 0.0856 C.H. Robinson shares for each RXO share, implying consideration of $30.25 per share.
That represents a 29% premium to RXO’s previous closing price. RXO shareholders are expected to own approximately 11% of the combined company following completion.
The transaction is expected to close during the first half of 2027, subject to shareholder and regulatory approvals.
The deal combines two major freight-brokerage networks at a time when transportation companies are increasingly using scale, data and automation to improve efficiency.
C.H. Robinson expects approximately $300 million in annual run-rate cost savings within two years after closing.
The company intends to apply its AI-enabled operating model across RXO’s operations, including freight matching, carrier purchasing and other logistics processes.
The acquisition also expands C.H. Robinson’s North American operations by adding RXO’s brokerage, expedited transportation and last-mile capabilities to its global forwarding and multimodal logistics platform.
Investors immediately differentiated between buyer and target. RXO shares surged following the announcement while C.H. Robinson shares fell as investors evaluated the acquisition premium and financing requirements.
C.H. Robinson plans to finance the cash portion using new debt and suspend share repurchases until leverage returns toward its target.
For investors, execution now becomes the central issue.
The principal tests will be whether C.H. Robinson achieves the projected savings, successfully integrates RXO and reduces leverage while navigating a freight market that remains highly cyclical.
