UPS sells Logistics Technologies to private equity firm

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Updated Nov 29, 2010


UPS on Friday, Nov. 19, announced an agreement to sell its UPS Logistics Technologies unit to Thoma Bravo, a private equity investment firm; financial details were not disclosed. Len Kennedy, vice president and chief operating officer of the unit, will become the chief executive officer after the acquisition, which is expected to close by Dec. 31. When the acquisition is complete, UPS Logistics Technologies will transition its name to Roadnet Technologies Inc.

UPS Logistics Technologies, headquartered in Baltimore, employs about 145 people to create high-tech transportation routing and fleet management systems. More than 200,000 vehicles are managed through 3,300 installations worldwide, representing a variety of industries. Specific transportation management applications provide street-level route plans, real-time wireless dispatch and GPS and strategic territory planning. Customers use the technology and tools for effective fuel management and driver productivity.

“UPS Logistics Technologies has a talented work force that has proven its ability to develop standalone technologies that help companies effectively manage their own fleets,” says Dave Barnes, UPS chief information officer. “Our decision to sell is based on UPS’s desire to focus on the development of technology directly tied to our own global package and freight networks and contract logistics services.”

The company was founded in 1983 as Roadnet Systems Corp. and was acquired by UPS in May 1986. “With this investment, we have an unprecedented opportunity to drive our growth with market expansion and new product lines,” Kennedy says. “There are millions of vehicles in commercial fleets where technology has yet to be applied for route management, telematics and fleet maintenance solutions.”