Echo Global Logistics plans initial public offering

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April 30, 2008

NEW YORK—Echo Global Logistics Inc. said Wednesday it plans an initial public offering of common stock but did not disclose any terms in its filing with the Securities and Exchange Commission.

The Chicago-based company said the IPO could raise up to $100 million, but this figure was estimated solely to calculate the registration fee and may change.

Echo Global plans to use proceeds from the offering to expand its sales force, enhance its technology, make acquisitions, and for working capital and other general corporate purposes. The company also plans to use $2.3 million of proceeds to make dividend payments to holders of Series B and D preferred shares.

Echo Global acts as a logistics middleman for companies, procuring transportation services on behalf of its clients through its carrier network, which encompasses more than 16,000 transportation providers. According to the filing, Echo Global provides logistics services to more than 4,600 clients across a wide range of industries, including manufacturing and consumer products. Because Echo does not own transportation equipment, overhead costs are low.

Echo's proprietary technology platform compiles and analyzes data to meet the shipping needs of the company's clients, enabling them to track individual shipments, among other things.

Douglas R. Waggoner, 49, has served as the company's chief executive since December 2006. Prior to joining the company, Waggoner founded SelecTrans LLC, a freight-management software company.

For the three months ended March 31, the company reported income available to common stockholders of $644,000 on revenue of $38.9 million. This compares with a loss of $78,000 on revenue of $12.9 million in the prior-year quarter.

Lehman Brothers and Citi are serving as lead managers of the deal. William Blair & Co., Thomas Weisel Partners, Barrington Research and Craig-Hallum Capital Group are also underwriting the offering.

Echo has applied to list its common stock on the Nasdaq Global Market under the symbol "ECHO."