On Thursday morning, Uber Freight announced plans to acquire one of the largest managed transportation and logistics networks in the world.

Uber Freight will acquire Transplace from TPG Capital for approximately $2.25 billion, according to a July 22 announcement from the two companies. The company will pay out $750 million in common stock from Uber Technologies and the rest in cash.

The companies say that the acquisition will usher in “a new era of logistics management” with a logistics platform that will “optimize the movement of freight across the entire marketplace and deliver best-in-class services to shippers, while also unlocking opportunities for carriers.”

The acquisition is expected to “accelerate Uber Freight’s path to profitability” and help the company serve more customers while expanding their presence in Mexico. The deal is hoped to help Uber Freight break even on an Adjusted EBITDA basis by the end of 2022.

Uber Freight’s brokerage will operate independently from Transplace’s managed transportation services after the acquisition, the companies say.

“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, Head of Uber Freight. “This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most.”

“The acquisition will combine the world’s premier shipper network platform with one of the industry’s most innovative supply platforms, to the benefit of all stakeholders,” said Frank McGuigan, CEO of Transplace. “Our expectation is that shippers will see greater efficiency and transparency and carriers will benefit from the scale to drive improved operating ratios. All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment. Finally, we want to thank TPG for their partnership as we have worked together to position Transplace as a leader in supply chain innovation.”

Last year, Uber Freight sold a $500 million stake to a private investment firm based in New York called Greenbriar Equity Group but maintained majority ownership.

TPG Capital is an asset firm that acquired Transplace in 2017.

The transaction is subject to regulatory approval.