Logistics company Yodel has been acquired by newly formed YDLGP Limited for an undisclosed sum, the company has been announced.

YDLGP is backed by a consortium including investment bank Solano Partners, who advised on the deal.

Mike Hancox, CEO of Yodel: “We’re extremely excited to begin the next chapter of Yodel’s journey, leveraging the scale of our business with the support of new shareholders and the future benefits of the Shift technology platform.

“Our customers have always been our priority and the transaction announced today allows us to ensure continuity for them, as well as our employees and wider stakeholders.”

Yodel delivers over 190 million parcels annually for clients like Very, Wren Kitchens, Gousto and Argos from its 50 sites across the UK.

YDLGP has also agreed terms to acquire Shift, the tech logistics firm that relaunched Tuffnells in 2023. On completion, the combined group will form a "super scale" logistics platform covering parcels via Yodel and larger freight through Tuffnells.

Shift's AI-driven tech will become the platform bringing automation and efficiency to both firms, the Shift leadership will also lend operational and tech expertise. The deal safeguards thousands of UK jobs, providing certainty for drivers, suppliers and customers.

The enlarged group will occupy a leading position in key logistics sectors via the combination of Yodel's parcel deliveries and Tuffnells' irregular dimensions and weights capabilities.

Jon Edirmanasinghe, Founding Partner of Solano Said: “We believe there is a fantastic opportunity to harness the strong brand and scale of Yodel in the UK and take further market share with the support of fresh capital and the innovative technology provided by the Shift team.

“We’ve seen the Shift team successfully acquire and relaunch the Tuffnells business and believe that forming the enlarged group to house all three creates a disruptive logistics powerhouse.”

Jacob Corlett, CEO of Shift, said: “I am incredibly proud of what we have built at Shift in the last few years, rapidly scaling our tech-logistics platform, and M&A has been a big part of that success.

“At the heart of this merger is Shift's revolutionary AI-driven technology platform, promising a future where efficiency and automation become the backbone of logistics operations.

“I look forward to working with Mike and the Yodel team, and with the support of YDLGP, continuing our journey building and scaling logistics through technology.”