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Echo will become a private company with additional resources and greater flexibility
Echo Global Logistics, Inc. has entered into a definitive agreement to be acquired by funds managed by The Jordan Company, L.P. (TJC), a global private equity firm, for an equity value of approximately US$1.3 billion.
Headquartered in Chicago with more than 30 offices around the country, Echo offers freight brokerage and Managed Transportation solutions for all major modes, including truckload, partial truckload, LTL, intermodal, and expedited. Echo maintains a proprietary, web-based technology platform that compiles and analyses data from its network of over 50,000 transportation providers to serve 35,000 clients across a wide range of industries and simplify the critical tasks involved in transportation management.
Echo's leadership selected TJC as their partner in this recapitalisation. Through this transaction, Echo 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. Additionally, the transaction will allow Echo to benefit from the operating capabilities, capital support and sector expertise of The Jordan Company.
Under the terms of the agreement, Echo stockholders will receive US$48.25 per share in cash, which represents a premium of approximately 54.0% over Echo's closing share price on 09 September 2021 and a premium of approximately 32.0% over Echo's all time high closing share price on 10 September 2018. Echo believes that the transaction provides its stockholders with an attractive premium that delivers immediate compelling value for their shares. The definitive agreement was unanimously approved by Echo's Board of Directors, which recommended that Echo's stockholders approve the agreement.
The acquisition is subject to customary closing conditions, including stockholder approval and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to be completed in Q4, 2021. The closing is not subject to a financing condition.
In addition, having an experienced financial partner, with resources to fund continued growth, the deal will result in a more rapid expansion of Echo's supply chain capabilities, including all of the automation planned to enable both its people and its digital freight marketplace.
Morgan Stanley & Co. LLC is serving as exclusive financial advisor to Echo, and Winston & Strawn LLP is serving as legal counsel to Echo. Citi is serving as financial advisor to TJC and Kirkland & Ellis LLP is serving as legal counsel to TJC. Credit Suisse AG and Citi will provide financing for the transaction.