Echo Global Logistics to Go Private in $1.3 Billion Buyout
(Bloomberg) -- Echo Global Logistics Inc. agreed to be acquired by private equity firm Jordan Co. for $1.3 billion, aiming to bolster resources toward expanding its technology and data capabilities.
Echo stockholders will receive $48.25 a share in cash, a 54% premium over the company’s closing price on Thursday, according to a statement. The stock had advanced 17% this year through Thursday, while the Nasdaq Composite Index gained 18%.
The Chicago-based company said Friday that it expects the deal to close in the fourth quarter, subject to antitrust approval and customary conditions.
Echo offers freight brokerage for shippers looking to move goods by truck and has 30 offices across the U.S. “Having an experienced financial partner, with resources to fund continued growth, will result in a more rapid expansion of Echo’s supply chain capabilities,” Doug Waggoner, Echo’s chief executive officer, said in the statement.
Jordan was founded in 1982 and has managed funds with original capital commitments of more than $17 billion, according to the New York-based private equity firm.
Following a brief trading halt, Echo’s shares soared 52% in premarket trading Friday.
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