Fura is expanding its freight brokerage business with the purchase of Road Dog Logistics, a truckload brokerage that adds roughly $30 million in revenue to the company’s growing platform.
Fura, a Frisco, Texas-based company, has made eight acquisitions so far on its journey to build an AI-powered freight brokerage business that generates more than $100 million in revenue. The company is focused on acquiring smaller brokers, those with less than $30 million in annual revenue, a segment of the third-party logistics (3PL) market that tends to be ignored by private equity investors.
Financial terms of the transaction have not been disclosed.
Road Dog Operational Control
After the purchase, Road Dog Logistics, based in Cincinnati, will continue its day-to-day operations. The team will then focus on Fura’s technology platform, which includes AI-powered quoting, carrier sales tools and shipment visibility tools.
“Road Dog is a great fit for us as an acquisition because it has an experienced brokerage team, existing customer relationships and a reputation for reliable service,” said Fura co-founder and CEO Jeff Dangelo.
“Fura will bring better technology and more support to the acquired business so its employees can focus on building the company instead of administrative paperwork,” he said.
The acquisition also strengthens Fura’s position in managed transportation and provides a ready-made customer base in the food and beverage industry.
A Broader Acquisition Strategy
Fura’s purchase of Road Dog is the third such deal as the company continues to consolidate smaller freight brokerage operations.
The company acquired Vancouver, Wash.-based High Rise Logistics in August. The company specializes in flatbed, expedited, truckload (TL) and less-than-truckload (LTL) freight.
In June, Fura acquired LG Logistics Solutions, a third party logistics company providing truckload, less than truckload and intermodal transportation services.
The transactions are examples of Fura’s continued efforts to grow the scope of its services and client base through strategic acquisitions.
“Being part of Fura will provide us with the technology and scale to continue to grow, but we’ll still maintain the high service standards and personal relationships our customers have come to expect,” said Steve Micheli, co-founder of Road Dog Logistics.
An AI-Driven Solution to Freight Brokerage Consolidation
Fura’s acquisition strategy could serve as a template for consolidation in the fragmented freight brokerage industry. The company is not just buying businesses and retaining their traditional cost structures, but is moving acquired operations onto a common technology platform based on AI and automation.
The approach will streamline work flows, improve operational efficiency and reduce administrative burdens across its growing network.
Being part of a larger, tech-enabled platform can give smaller brokers access to capabilities they might struggle to develop on their own. Fura will use the strategy to broaden its revenue base and customer portfolio, while keeping its operating structure lean.
Fura’s acquisition of Road Dog is another example of this strategy, bringing new customers, food and beverage expertise and approximately $30 million in revenue to Fura’s growing freight brokerage platform.
