Echo Global Logistics Inc. (NASDAQ: ECHO) stock gained by 52.73% in the current market trading session. Echo Global Logistics is a Fortune 1000 company that specializes in technology-assisted transportation and supply chain management.
ECHO stock’ Important Development
Echo Worldwide Logistics has struck a deal to be acquired with the money invested by The Jordan Company, L.P., a global private equity firm, for roughly $1.3 billion in stock value. Echo will be a private company as a result of this transaction, which it thinks will give it with more resources and freedom to continue to develop its technology and data science platform and improve its value proposition to shippers and carriers. Echo will also benefit from The Jordan Company’s operating capabilities, capital assistance, and sector experience as a result of the purchase.
About the agreement,
Echo investors will receive $48.25 per share in cash under the details of the contract, representing a premium of about 54% over Echo’s closing share price on September 9, 2021 and about 32% over Echo’s all-time high closing share price on September 10, 2018. Echo thinks that the deal offers an appealing premium to its owners, resulting in instant compelling value for their shares. Echo’s Board of Directors unanimously approved the binding agreement, and the arrangement was presented to Echo’s stockholders for approval.
The deal is dependent on standard closing conditions, such as stockholder authorization and the completion or termination of the Hart-Scott-Rodino Antitrust Improvements Act’s applicable waiting period. In the fourth quarter of 2021, the acquisition is scheduled to be completed. There are no funding requirements for the closing.
Doug Waggoner, Chairman of the Board of Directors and CEO at Echo stated that,
He is excited to work with TJC since they bring a wealth of industry knowledge and experience that will help Echo grow even faster in the market. Furthermore, having a professional financial partner with the means to fund further growth would allow Echo to expand its supply chain capabilities more quickly, including all of the automation intended to support both the employees and their digital freight marketplace.