Sennder buys CH Robinson’s European business

German shipping unicorn Sennder is on a roll. Today, the company announced it is acquiring the European land transportation assets of logistics giant CH Robinson in an all-cash deal. Terms of the deal were not disclosed, but a source close to the company said it is similar in value to Sennder’s acquisition of Uber’s European ride-hailing business in 2020.

The transaction was for shares only and was said at the time to be worth around €900 million.

CH Robinson is estimated to be the world’s second-largest logistics provider after Amazon, and currently has a market capitalization of more than $10 billion. The acquisition is expected to double Sennder’s annual revenue to €1.4 billion (meaning it currently posts revenue of €700 million, similar to the operation it’s buying). The combined company will employ 1,700 people in 20 markets, putting Sennder in the top five so-called “full truckload” services in Europe.

It is worth noting that this is the second piece of news that Sender has extorted from CH Robinson: in May, the company acquired the head of engineering at a larger company, Kollen Glynn, and appointed him as its new technical director.

Sennder has also made other acquisitions to expand its fleet and overall footprint. In 2021, it also acquired Cars&Cargo from the Netherlands, also for an undisclosed price.

Both acquisitions came at a time when e-commerce and the broader technology market were at their peak. The spread of Covid-19 had consumers working from home and spending more time online, prompting people to click through to get goods and services they might normally buy in person. All of that also fueled Sennder’s two back-to-back fundraising rounds: $160 million in January 2021, followed by another $80 million in June 2021, at a valuation of more than $1 billion.

Many technology sectors, including e-commerce, are operating in leaner environments these days, which makes Sennder’s latest acquisition all the more interesting. It underscores the greater consolidation we’ve been seeing across many sectors, with companies with cash (or desirable stock) to divest buying assets to achieve better economies of scale — while others are working to downsize (and sell assets) to reduce operating costs while focusing on their core operations.

The deal is expected to close in the fourth quarter of 2024, subject to regulatory approval. We understand that another fundraising is one of the “strategic options” Sennder is considering.

“This acquisition will be critical to Sennder’s roadmap. With a vision to accelerate global trade to deliver the products and goods that power the world economy, CH Robinson aligns closely with Sennder’s mission and values ​​to create an efficient and sustainable road transportation network in Europe,” said David Nothacker, CEO of Sennder, in a statement. “We are extremely impressed with CH Robinson’s European surface transportation team, and with our combined business and expanded talent pool, we can deliver significant growth and operational scale, accelerating our expansion across Europe and increasing network density and digital capabilities to the benefit of carriers, freight forwarders and the broader industry. We are excited to welcome the EST team and begin the next chapter of Sennder’s journey.”