UPS CEO Carol Tomé announced the decision to sell the Coyote Logistics business in order to focus on UPS' core small package delivery and logistics services. UPS acquired Coyote in 2015 to add extra capacity during peak shipping seasons, but faced declining revenue and profit in recent years. The sale to RXO for $1.025 billion in cash will allow UPS to streamline operations, cut costs, and drive efficiency. RXO anticipates annualized cost synergies of at least $25 million with the acquisition of Coyote, which generated $3.2 billion in revenue in 2023. The deal will increase RXO's customer base by about 80%, enhancing its tech-enabled transportation brokerage services alongside Coyote's digital freight platform. Coyote employees will transition to RXO, with CEO Drew Wilkerson expressing optimism for future collaboration and success.