MODE Transportation, a Dallas-based transportation and logistics company, announced it’s acquiring SunteckTTS, a transportation solutions company, under a merger agreement. According to a statement, the combined businesses will operate under the MODE brand, facilitate more than 1.5 million customer shipments yearly, and generate $2 billion-plus in revenue.
MODE President and CEO Jim Damman is expected to continue as CEO of the merged company, while SunteckTTS CEO Ken Forster will serve as president and COO. Executives from both companies plan to continue with MODE.
“In today’s increasingly competitive logistics market, the importance of scale, service diversity, and technology cannot be overstated. The combination of MODE and SunteckTTS provides new and existing agents, shippers, and carrier partners a significantly enhanced platform positioned for the future,” Forster said in a statement.
The new iteration of MODE will service a number of transportation sectors including truckload, less-than-truckload, rail intermodal, drayage, air, ocean, and parcel freight and will use its increased scale and resources to invest in technology and innovation, according to a statement.
Damman noted that the two companies are built on similar cultures of outstanding customer service and adding SunteckTTS’ agent, product, and customer base will strengthen the merged company’s diversity of service offerings.
“This transaction represents an important milestone in MODE’s history,” Damman said in a statement. “A year ago, we launched an initiative to identify strategic acquisition opportunities that would strengthen the MODE platform and enable us to continue to improve the best-in-class service and capabilities we provide to our customers. We look forward to welcoming SunteckTTS as we continue to execute on this strategy going forward.”
Both MODE and SunteckTTS are privately-held portfolio companies of funds with MODE affiliated with York Capital Management and SunteckTTS affiliated with Comvest Partners. Comvest will continue to own interest in the merged company.
In June, we reported on the sale of Mode to York Capital for around $238.5 million along with a relocation of its headquarters from Preston Trail Atrium to Signature Exchange as the main office of more than 100 spread across the U.S. MODE Transportation was founded in 1989.
Get on the list.
Dallas Innovates, every day.
Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day.
R E A D N E X T
-
North Texas has plenty to see, hear, and watch. Here are our editors' picks. Plus, you'll find more selections to "save the date."
-
The hybrid event in August will take place in person at SMU and virtually. The seventh annual Dallas Startup Week powered by Capital One is Dallas-Fort Worth's largest event focused on driving entrepreneurial success, economic impact, and innovation in the region.
-
You'll find deadlines coming up for a new accelerator program; and many more opportunities.
-
Five local winners received up to $200,000 in funding to activate their solutions throughout North Texas.
-
"Together, we can build the workforce of the future—one that will attract and grow businesses, build equity, and sustain our city’s outstanding economic growth for years to come," Mayor Eric Johnson said on the report's release.
