C.H. Robinson, already one of the world’s largest third-party logistics companies, is buying rival freight broker RXO in a deal valued at nearly $6 billion.

The Eden Prairie, Minnesota-based company said it plans to bring its artificial intelligence tools and cost-cutting approach to RXO, with the goal of handling more shipments more efficiently. C.H. Robinson expects about $300 million in annual savings within two years of completing the acquisition.

“At its root, this transaction is an opportunity to accelerate our proven strategy with a combined platform to enhance our resilience and better compete,” C.H. Robinson CEO Dave Bozeman said during a Monday morning call with analysts.

The strategy builds on Bozeman’s push to simplify work and eliminate wasted steps, drawing on lean management principles rooted in manufacturing.

AI has accelerated that work. C.H. Robinson previously said its technology could process an emailed shipping order in 90 seconds, down from four hours.

The changes have also reshaped the company’s workforce. C.H. Robinson offered senior managers voluntary buyouts earlier this year as AI adoption reduced staffing needs.

C.H. Robinson said in the filing that it would also centralize processes, reduce duplication across the companies and consolidate real estate where it makes sense. The filing did not explicitly address whether job cuts would be part of the projected $300 million in savings.

Robinson representatives could not immediately be reached for comment.

Buying RXO would give C.H. Robinson more business to which it could apply that approach, along with more shipping data to help its AI tools match freight with trucks and price shipments, the company said in a news release Monday.

The cash-and-stock deal, valued at an estimated $5.8 billion, would also expand C.H. Robinson’s North American trucking and delivery network. Once complete, the combined company will have an enterprise value of over $25 billion.

Lucas Servera, a Truist analyst, said in a Monday research note that the acquisition may have “significant[ly] greater earnings upside than the announced $300 [million] cost synergy target alone may suggest.”

Part of that analysis is based on there being limited overlap between the two companies’ customers, Servera wrote. Bozeman said on Monday’s call that the deal brings together nearly 93,000 shippers and 600,000 carriers. C.H. Robinson currently has about 75,000 shipping customers and 450,000 carriers.

RXO’s top customer industries include retail and e-commerce, industrial and manufacturing; and food and beverage.

The push for efficiency comes as the shipping industry wrestles with elevated costs. Higher diesel prices are adding to the strain on trucking companies already paying more for repairs, tires and driver benefits.

The average cost of operating a truck reached a record $2.34 a mile last year, according to the American Transportation Research Institute.

C.H. Robinson is also seeking a federal trucking safety standard after the Supreme Court ruled in May that a truck crash victim’s negligence lawsuit against the company could proceed.

Bozeman previously said the decision could results in retailers, manufacturers and customers seeing higher prices for shipped goods as long-haul carriers pass along the additional costs of navigating a state-by-state legal patchwork.

The deal between C.H. Robinson and RXO is expected to close in the first half of 2027. Both companies’ boards have approved the acquisition, pending approval from regulators and RXO shareholders. The North Carolina-based company’s stock jumped more than 20% in early morning trading.

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