[Stay on top of transportation news: Get TTNews in your inbox.]
Echo Global Logistics has entered a definitive agreement to be acquired by global private equity firm The Jordan Co., the companies announced Sept. 10.
Echo will become a private company through the transaction, which is expected to be completed in the fourth quarter.
It expects that the acquisition will provide additional resources and greater flexibility to continue to build its technology and data science platform while enhancing its value proposition to shippers and carriers.
“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 CEO Doug Waggoner said in a statement.
Echo was valued at approximately $1.3 billion. The price represents a premium of 54% over its share price at $48.25 on Sept. 9.
Echo’s board of directors gave unanimous approval to the transaction and recommended that stockholders approve it as well.
“We are impressed with Echo’s people, technology and business results, since their founding in 2005,” said Brian Higgins, head of logistics and supply chain vertical at The Jordan Co. “We strongly support the team’s vision for continued growth and look forward to partnering with them as we bring expanded financial resources and expertise to accelerate Echo’s technology leadership that has set the company apart from its competitors.”
The acquisition is subject to customary closing conditions, including stockholder approval and expiration or termination of the waiting period.
Echo Global Logistics ranks No. 19 on the Transport Topics Top 50 list of the largest logistics companies in North America.
The Jordan Co. is the parent of Odyssey Logistics, which ranks No. 40 on the TT Top 50, and several other transportation and logistics providers.
Want more news? Listen to today's daily briefing below or go here for more info: