Echo Global Logistics filed with the SEC for an IPO today. The filing shows a maximum aggregate offering of $100 million. They have applied to trade on the NASDAQ Global Market under the symbol “ECHO” and the underwriters for the transaction include Lehman Brothers, Citi, William Blair and Company, Barrington Research, Thomas Weisel Partners LLC, and Craig-Hallum Capital Group.
Echo is a leading business process outsourcing for transportation and logistics. Their technology platform, Evolved Transportation Manager, allows them to efficiently meet shipping needs and assist freight management. Their strategy to minimize shipping costs and maximize efficiency lies in identification and utilization of excess capacity. Since company began in 2005, their customer base and revenues have grown dramatically. In 2005 they generated revenues of $7.3 million and net income was a loss of $0.5 million. Serving over 4,600 clients in 2007, net income hit $1.7 million.
In 2006, according to Armstrong and Associates, only 17% of logistic expenditures in the United States were outsourced. Echo believes that this number will increase and the market will expand over the next several years, generating additional customers and revenues.
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April 30, 2008