XPO Logistics, a third-party logistics and transportation service provider, is buying multinational freight transportation and logistics company Con-way.
According to ABC News, XPO and Con-way announced the deal Wednesday, which is valued at a staggering $2.72 billion or $3 billion including the $290 million in debt.
With this, XPO will launch an offer for Con-Way's shares at $47.60 per share, representing a 32 percent premium of its closing price on Tuesday.
Following the offer, Con-Way will merge with XPO's subsidiary, thereby becoming a wholly owned subsidiary of XPO.
As reported by CNBC, the Con-Way trucking company's share is up by almost 33 percent while XPO Logistic's share barely changed at $34 after market.
Up to Wednesday's closing price, Con-Way's stock had fallen by nearly 28 percent this year.
XPO Logistics is headquartered in Greenwich, Connecticut and is currently the third largest freight brokerage firm, the third largest domestic intermodal services provider and the largest provider of cross-border Mexico intermodal services.
They are also a provider of technology-enabled contract logistics and their managed transportation and global freight forwarding, are growing.
XPO is also formerly known as Express-1 Expedited Solutions Inc. but was renamed XPO in September 2011, after investor Bradley S. Jacobs led a team that invested $150 million in cash in the company.
Con-way Inc., hailing from Ann Arbor, Michigan, meanwhile is the third largest transportation and Logistics Company in America. The company provides services through its primary operating companies of Con-way Freight, Con-way Truckload and Menlo Worldwide.
These Con-way companies provide less-than-truckload or LTL, full truckload and multimodal freight transportation, as well as logistics, warehousing and supply chain management services.
The merging of these two freight services companies are reported by Reuters to make XPO Logistics the second largest provider of LTL services.
The boards of both companies have approved the deal and is expected to close this October.
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