Thoma Bravo Acquires UPS Logistics Technologies

Atlanta-based UPS has reached an agreement to sell its UPS Logistics Technologies unit, based in Baltimore, to Thoma Bravo LLC, a private equity investment firm. Financial details of the transaction were not disclosed.

Thoma Bravo is a private equity firm that has been providing equity and strategic support for 30 years. The company’s major focus areas are the software and services sectors. In the software industry, Thoma Bravo says it has completed more than 50 acquisitions across 16 platform companies with total annual earnings of more than $1 billion.

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

Len Kennedy, vice president and COO of the unit, becomes chief executive officer of UPS Logistics Technologies, which will change its name to Roadnet Technologies Inc.

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

UPS Logistics Technologies was founded in 1983 as Roadnet Systems Corp. and was acquired by UPS in May 1986. The sale to Thoma Bravo will not affect the full suite of transportation and logistics solutions offered by UPS, including the transportation of packages and freight; the facilitation of international trade and the deployment of advanced technology to manage customer supply chains, according to a press release issued by UPS and Thoma Bravo.

“Thoma Bravo is excited to bring our expertise in growing application software solutions companies to Roadnet Technologies Inc.,” says Holden Spaht, principal at Thoma Bravo. “As an independent company supported by Thoma Bravo, Roadnet will be well-positioned to enhance its suite of software applications for distribution and services companies.”

Jeffrey Del Papa, Thoma Bravo vice president, adds, “In partnership with the existing management team, we intend to accelerate the growth of Roadnet and strengthen the company’s leadership in the transportation management solutions market.”