Echo Global Logistics (NASDAQ:ECHO) stock is getting a major boost on Friday thanks to a merger deal with The Jordan Company.
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.
We’ve got more stock news worth checking out below!
Our daily coverage of the market offers up the latest news that traders need to know about. Among that is why shares of SOS Limited (NYSE:SOS), IVERIC bio (NASDAQ:ISEE), and Affirm Holdings (NASDAQ:AFRM) are soaring higher today. You can get all those details from the links below!
More Friday Stock Market News
- SOS Stock: Why Is Crypto Mining Play SOS Soaring 20% Today?
- ISEE Stock: Why Rival Eye Drug Developer’s Disappointment Is a Boon to IVERIC bio
- AFRM Stock: Why ‘Buy Now, Pay Later’ Play Affirm Holdings Is Soaring Today
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.