UPS is working to buy Chicago-based Coyote Logistics for $1.8 billion, according to two unnamed sources.

The sources say that the deal could be done by the end of the month.

If the deal goes through (and sources say that there is a possibility it could fall through), this would be the third biggest transportation logistics deal of the year after FedEx acquired TNT Express and XPO Logistics purchased Norbert Dentressangle SA.

Experts say that a recovering economy and increased demand from consumers is forcing logistics companies to consolidate to provide better service.

Sources:
CNBC
Bloomburg