U.S. Xpress Enterprises Inc. USX announced Tuesday an agreement to be acquired by Knight-Swift Transportation Holdings Inc. KNX, in a deal that values U.S. Xpress shares at more than four times the latest closing price. Under terms of the deal, which the companies said is valued at $808 million, shareholders of the provider of truckload carrier services will receive $6.15 in cash for each U.S. Xpress share they own, which is 310% above Monday’s close of $1.50. The stock is currently halted for news. The acquisition, which is expected to close in the second quarter or early third quarter of 2023, is expected to add to Knight-Swift’s adjusted earnings starting in 2024, and is expected to boost Knight-Swifts revenue run-rate to nearly $10 billion. U.S. Xpress will continue to operate as a separate brand after the deal closes. “The increased scale, operating expertise and resources of the combined entity will allow U.S. Xpress to pursue new levels of service and efficiency,” U.X. Xpress Chief Executive Eric Fuller said. U.S. Xpress shares have tumbled 17.1% over the past three months through Monday, while Knight-Swift’s stock has gained 1.8% and the S&P 500 SPX has tacked on 1.9%.
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