Key Takeaways
- After its initial efforts to buy Beacon Roofing Supply were rebuffed, technology solutions firm QXO and the roofing distributor have come to an agreement.
- QXO will pay Beacon shareholders $124.35 per share, valuing it at roughly $11 billion.
- Last week, the sides confirmed the deal was being discussed, causing Beacon’s stock to soar.
After its initial efforts to buy Beacon Roofing Supply (BECN) were rebuffed, technology solutions firm QXO (QXO) and the roofing distributor have come to an agreement.
Greenwich, Conn.-based QXO will pay Beacon shareholders $124.35 per share—or roughly $11 billion—in cash, the terms the companies discussed last week, which caused shares of the Herndon, Virginia-based Beacon to soar.
The deal, expected to close by the end of April, comes after Beacon had rejected QXO’s prior overtures.
“We expect Beacon to be the first of many acquisitions, putting us on track toward our intended goal of $50 billion in revenue,” a QXO spokesperson told Investopedia. “Beacon is a great company in a large and growing industry, and we’re confident that the same playbook we used in waste management, equipment rental and transportation is completely applicable to Beacon’s business.”
Shares of QXO and Beacon were up 4% and 2%, respectively, in premarket trading Thursday. QXO stock entered the day down nearly 90% from a year ago, while Beacon shares had risen more than 30%.
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