Echo Global Logistics To Be Acquired By The Jordan Company For $1.3B

Echo Global Logistics Inc (NASDAQ: ECHO) announced Friday that it has entered into a definitive agreement to be acquired by global private equity firm The Jordan Company for an equity value of approximately $1.3 billion.

What To Know: Echo Global Logistics is a provider of technology-enabled transportation and supply chain management services. 

As a result of the transaction, Echo Global Logistics will become a private company, which it expects will provide additional resources and greater flexibility to continue to build its technology and data science platform and enhance its value proposition to shippers and carriers.

The company also said the transaction will allow it to benefit from the operating capabilities, capital support and sector expertise of The Jordan Company.

"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," said Doug Waggoner, chairman and CEO of Echo Global Logistics.

"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," Waggoner added.

Transaction Details: Echo Global Logistics' shareholders will receive $48.25 per share in cash, which represents a premium of approximately 54% over the company's share price upon closing yesterday.

The definitive agreement was unanimously approved by Echo Global Logistics' board of directors. Pending shareholder approval, the transaction is expected to be completed in the fourth quarter.

Echo Global was founded by Erik Lefkofsky and Brad Keywell, who also co-founded Groupon Inc (NASDAQ: GRPN).

ECHO Price Action: Echo Global Logistics is making new all-time highs in Friday trading. 

The stock was up 52.63% at $47.80 Friday afternoon. 

Photo: Gerd Altmann from Pixabay.