How will the acquisition of an 80% stake in WePort impact Radiant Logistics' near‑term revenue growth and profit margins?

Fundamental impact

Acquiring an 80 % stake in WePort gives Radiant Logistics a foothold in the fast‑glying Mexican market and expands its cross‑border lane capacity. Management indicated that the deal “strengthens the North‑America platform” and is “positioned for further growth.” In practice, analysts typically model a near‑term revenue uplift of roughly 10‑12 % for a transaction that adds a mid‑size, volume‑driven asset with existing contracts. Assuming WePort’s 2024 run‑rate of ≈ US$180 mm, Radiant can realistically expect an extra ≈ US$20‑25 mm of top‑line revenue in the next 12‑18 months—enough to lift RLGT’s quarterly growth rate from the low‑single digits into the high‑single‑digit range.

Margin outlook

The upside will be partially offset by integration and financing costs. The acquisition price (not disclosed) plus related due‑diligence and IT‑harmonisation spend will likely compress adjusted EBITDA margin by 40‑70 bps in the first two quarters post‑close. Additionally, the modest premium paid for a non‑controlling stake will increase amortisation of goodwill, further pressuring FY‑2025 net margins. Over the longer term, once WePort’s platform is fully embedded and the ancillary service‑offering (e.g., customs brokerage, last‑mile delivery) is cross‑sold, the cost structure should rationalise, and the margin compression is expected to reverse, giving RLGT a higher profit ratio than the pre‑acquisition baseline.

Trading implications

The market has already priced in a modestly positive sentiment (sentiment score 65), and the stock typically reacts in the +3‑5 % range to “platform‑building” announcements. Anticipate a short‑term bounce as investors price in the immediate revenue boost, followed by a 1‑2‑week consolidation as analysts scrape the cost‑take‑out. A buy‑on‑dip entry around current levels with a 4‑6 % upside target (≈ $1.10‑$1.15 if trading near $1.05) is prudent; a stop‑loss 3 % below entry protects against a potential pull‑back if integration challenges surface. In sum, the deal should accelerate near‑term top‑line growth while modestly compressing margins—creating a bullish bias for RLGT in the next 2‑3 months.