Shares of Echo Global Logistics Inc. ECHO, -2.06% rocketed 52.5% into record territory in premarket trading Friday, after the transportation and supply chain company announced an agreement to be acquired by private equity firm The Jordan Company L.P. in a deal valued at $1.3 billion. Under terms of the deal, Echo shareholders will receive $48.25 in cash for each Echo share they own, representing a 54.1% premium to Thursday’s closing price of $31.32, and 32.0% above the May 5, 2021 record closing price of $36.56. “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 Echo Chief Executive Doug Waggoner. “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’s stock has rallied 16.8% year to date through Thursday, while the Dow Jones Transportation Average DJT, -1.06% has advanced 15.5% and the S&P 500 SPX, -0.46% has rallied 19.6%.
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