Echo Global Logistics, Inc. (NASDAQ: ECHO) disclosed that it has inked a definitive merger agreement with The Jordan Company, L.P (TJC). As per the agreement, Echo will be bought by The Jordan Company for an equity value of nearly $1.3 billion. The deal will enable Echo to take advantage of the operating capabilities, capital support, and sector expertise of The Jordan Company.
It has been revealed that through this deal, Echo will become a private firm which it anticipates will offer additional resources and greater flexibility to continue to build its technology and data science platform and optimize its value proposition to shippers and carriers.
As per the terms of the pact, Echo stockholders will get $48.25 per share in cash, which signify a premium of nearly 54% over Echo's closing share price on September 9, 2021, and a premium of nearly 32% over Echo's all-time high closing share price on September 10, 2018.
Additionally, Echo has the opinion that the deal offers its stockholders an attractive premium that provides instant convincing value for their shares. The definitive agreement was adopted unanimously by Echo's Board of Directors, which suggested that Echo's stockholders support the agreement.
Furthermore, the purchase is dependent on customary closing conditions, including stockholder authorization and the conclusion or end of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The deal is anticipated to be finalized in the fourth quarter of 2021. The execution is not dependent on financing conditions.