Arrive Logistics (“Arrive”) and ATL Partners (“ATL”) announced today that an investor group led by ATL and its co-investors The Baupost Group, British Columbia Investment Management Corporation, and Temasek has made an investment into Arrive. Arrive is a leading freight brokerage that delivers unparalleled service to its network of shippers and carriers through its highly trained workforce and advanced proprietary technology platform. The investment includes over $300 million of capital through a combination of primary and secondary equity, resulting in the ATL led investor group acquiring a significant minority equity stake and becoming the single largest investor in the Company. As part of the transaction, seasoned logistics and technology executives Andrew Clarke, Jerome Lorrain and Paul Bell will join the Board of Directors with Andrew Clarke announced as chairman.
Since its founding in 2014, Arrive’s workforce, which is distributed across Austin, Texas (headquarters) and Chicago, has expanded from ten to more than one thousand employees. With only $50 million in raised capital, Arrive has grown from $530 million of revenue in 2019 to $810 million of revenue in 2020 and is on pace to exceed $1.2 billion in 2021. Previous funds were deployed to develop a proprietary transportation management system that utilizes machine learning and automation to eliminate waste in the supply chain, drive productivity, and enable best-in-class service to shippers and carriers. Proceeds from this investment will enable the Company to continue to invest in its proprietary technology, create new service offerings and expand the team.
“Partnering with investors like ATL with extensive industry experience, who believe in our vision and are confident in our ability to build a leading logistics organization is extremely exciting. Over the last seven years, we have focused on building a top-tier workforce, strong relationships with our partners and best-in-class technology,” said Matt Pyatt, CEO and Co-Founder of Arrive Logistics. “Today we are focused on innovation that empowers our partners, building digital solutions to provide a seamless experience designed for efficiency and asset-like services.”
“We have followed the Arrive story since inception and have been incredibly impressed with the Company’s management team, track record of organic growth and strong unit economics,” said Paul Teske, Co-Founder and Partner at ATL, and Kirby Fine, Partner at ATL. “Arrive has a proven model to deliver best-in-class services and technology to its customers and carriers, and we are excited to support the management team’s strategic vision over the coming years.”
J.P. Morgan served as placement agent and Holland & Knight LLP served as legal counsel to Arrive. Credit Suisse served as financial advisor and Gibson, Dunn & Crutcher LLP served as legal counsel to ATL.