US express delivery company United Parcel Service Inc (UPS) is said to be in talks to buy Chicago-based Coyote Logistics LLC for at least US$1.8 billion, according to a Reuters report quoting a source familiar with negotiations. According to the report, Coyote is backed by Warburg Pincus, the New York-based private equity firm, which may instead opt for an initial public offering as a way to sell its stake in the transportation logistics services provider.

Coyote coordinates the movement of freight across North America for around 40,000 shippers of all sizes and a variety of industries including consumer goods, industrial goods, retail and healthcare. The company had revenue of around $2 billion last year.