Supply chain logistics platform Flexport is acquiring the assets of shuttered digital freight network Convoy, according to a memo Flexport CEO Ryan Petersen sent to staff Wednesday.
Flexport will restore Convoy’s trucking logistics services for customers in the coming weeks, according to the memo, shared by Freight Waves. Petersen said Flexport won’t acquire the business or any of its liabilities, but does plan to retain “a small group of team members from their core product and engineering team.”
Convoy co-founder and CEO Dan Lewis might be one of the team members joining Flexport, reports the Wall Street Journal, citing a person familiar with the agreement. Lewis did not respond to TechCrunch to confirm.
The terms of the deal were not disclosed, but Petersen said in his memo that “the purchase price relative to value is modest.” In April last year, Convoy was valued at $3.8 billion after a $260 million Series E round.
Flexport could not be reached for comment.
Petersen also noted that Flexport’s expenses “will be limited to what’s necessary to maintain the tech.” When Petersen took back the CEO title in October after his successor was pushed out, the executive’s big message was about getting Flexport’s finances back in order. He had criticized former CEO Dave Clark for overspending on hiring and expansion. Since stepping back into the CEO role, Petersen has overseen a plan of cost cutting, including laying off about 20% of its workers, or around 600 people.