NFI announces acquisition of Transfix’s freight brokerage business

Earlier this week, Camden, N.J.-based third-party logistics (3PL) services provider NFI acquired the freight brokerage operation of New York-based Transfix, a logistics technology services provider that streamlines shipment data to better help shippers make informed decisions to optimize time and revenues.

A purchase price was not disclosed.

Subsequently, the Transfix business will be focused on its software and data solutions services for brokers, shippers, and carriers, with NFI to be the first 3PL customer to use Transfix’s TMS, the companies said.

NFI officials said that bringing Transfix into the fold, with its talent and technology, will provide benefits in various ways, including strengthening carrier and customer interactions and providing more robust brokerage offerings, meshed with NFI’s technology platform. What’s more, NFI will bring more than15,000 carriers to its carrier network through this deal.

“We’re excited to welcome the Transfix brokerage team to NFI,” said Sid Brown, CEO of NFI, in a statement. “Their experienced team provides an exceptional solution that aligns well with our strategy. We look forward to partnering with their customers and enhancing the experience for our current portfolio. As one of the largest and most diversified 3PLs in the marketplace, NFI can leverage its scale and offer its existing service offerings of dedicated transportation, warehousing and distribution, and port services to the Transfix customer base.” 

From a Transfix perspective, company’s primary focus will be taking its technology—which is comprised of its Transfix Intelligent Freight Platform, a TMS that utilizes automation and machine-learning to drive processing costs significantly below industry standards, and powered the logistics networks of hundreds of leading retailers, consumer brands, manufacturers, and logistics companies—to market as a SaaS and data solutions provider addressing the specific needs of brokers, shippers, and carriers.

Dave Broering, President, Integrated Logistics, for NFI told LM that NFI’s acquisition of the assets of Transfix’s brokerage division and the simultaneous shift of Transfix’s core business signaled new opportunities for both companies—a partnership and pivot that allowed both talent and technology to thrive and flourish in new ways in the freight brokerage market of today, and tomorrow.

“Transfix was looking to create a differentiated TMS in the market that brokers like NFI can leverage,” he said. “At the same time, NFI was able to acquire a shipper base to leverage its best-in-class service model that helps automate freight.”

The executive added that the actual deal transpired over the past few months, noting that NFI and Transfix have always had mutual respect for each other in the marketplace. When the idea was presented to both sides, it seemed like a natural fit where both companies are in an even better position than before, he stated.

When asked what the main benefits of this deal are for NFI’s shipper customers, Broering said that with the addition of the Transfix freight brokerage team, NFI’s Integrated Logistics Solutions (ILS) group will be able to provide a large-scale platform for major U.S. shippers to leverage.

“By combining the Transfix TMS, with our internally developed software, we feel we can add automation and visibility to both shippers and carriers in a deeper way,” he said. “NFI saw an opportunity to strengthen carrier and customer interactions plus offer more robust brokerage solutions through the integration of Transfix’s TMS into NFI’s existing in-house technology. Taking the technology of the Transfix TMS combined with NFI’s operational execution and relationship management capabilities creates the right formula for bringing additional value to shippers and carriers, all while lowering their total costs.”

Leading up to this announcement, Transfix Co-Founder and CEO Jonathan Salama told LM that Transfix had reached an inflection point in its 10-year journey in which both opportunity and possibility presented themselves, with the timing right what he called the optimal next chapter for its people and products becoming clear.  

“Over the last decade, we built a groundbreaking tech platform featuring cutting-edge solutions that have proven highly effective in optimizing logistics operations and driving profitability,” he said. “With NFI’s acquisition of our brokerage business, we are now able to double down on those efforts and offer these solutions to our peers in brokerage. NFI is the first third-party customer of our technology platform, and we are entering the larger market with a suite of offerings that serve all parties involved in the movement of goods, including brokers, shippers, and carriers.”

As for Transfix’s current shipper customers, he said they will move into NFI’s brokerage division and will have access to NFI’s robust carrier network and exceptional brokerage solutions.

He also noted that Transfix will also offer data modeling and reporting solutions to shipper customers.

“Our world-class data science team can help shippers forecast costs, manage risk, and analyze lanes—essentially understand and supercharge their data to help make better decisions across their pricing and operations,” he said.

Looking ahead, Salama said he believes Transfix is in a good position going forward, with the company poised for growth, acceleration, and innovation. In addition to the company’s shipper offerings, he explained how Transfix’s team of experts is “heads-down and focused” on bridging superior solutions to brokers and carriers with a suite of plug-and-play solutions designed to enhance and power up both proprietary and third-party TMSs. 

“On the data side, you can expect an expansion of our freight market intelligence and the cost modeling solutions, for shippers, brokers, and carriers,” said Salama. “Our focus has always been making the lives of everyone in trucking easier—whether you’re the one booking the loads or managing an entire company’s freight strategy—and it’s exciting to take our experience and knowledge and open them up to all of our peers and partners.

We encourage shippers, carriers, and brokers/3PLs to get in touch with us so that together, we can identify opportunities to supercharge their platforms with data and automation. Our engineering and data science teams are set up to conduct rapid assessments, develop custom builds, and create seamless platform integrations with their existing tech stacks.” 

Ben Gordon, founder and managing partner of Palm Beach, Florida-based Cambridge Capital, and managing partner of BG Strategic Advisors (BGSA), described the deal as a natural fit for both parties.

“NFI is one of the best run logistics companies in the world,” he said. “It is a logical buyer for the Transfix freight brokerage business services. And on the other hand, this allows Transfix to focus on its pure play software.”