ECHO Stock: Why Echo Global Logistics Shares Are Trucking Higher Today

Echo Global Logistics (NASDAQ:ECHO) stock is getting a major boost on Friday thanks to a merger deal with The Jordan Company.

Two business men shaking hands in a sunny setting representing ECHO Stock.

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Funds managed by The Jordan Company will be used to take the company private. This will have the private equity firm paying a total of $1.3 billion for the transportation and supply chain management services company.

Breaking down the details of the deal, The Jordan Company is offering up $48.25 per share in cash for ECHO stock. That represents a 54% premium over the stock’s closing price on Thursday. It’s also a 32% premium over the stock’s all-time high from Sept. 10, 2018.

Doug Waggoner, chairman and CEO of Echo Global Logistics, said this about the deal sending the company’s stock higher today.

“I’m thrilled to partner with TJC as they bring significant expertise and industry experience to enable Echo to further accelerate our success in the market. In addition, having an experienced financial partner, with resources to fund continued growth, will result in a more rapid expansion of Echo’s supply chain capabilities, including all of the automation planned to enable both our people and our digital freight marketplace.”

Echo Global Logistics’ Board of Directors has already thrown its unanimous support behind the deal. So long as there are no regulatory hurdles, the deal will reach completion in the fourth quarter of 2021.

ECHO stock is seeing major trading following today’s news. This has some 2 million shares of the stock changing hands as of this writing. That’s well above its daily average trading volume of around 180,000 shares.

ECHO stock was up 53.7% as of Friday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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