Technology Solutions Firm QXO Agrees To Buy Beacon Roofing Supply For $11B

Key Takeaways

• After being rejected in its first attempt to purchase Beacon Roofing Supply, QXO has reached an agreement with the roofing distributor.
• QXO is paying Beacon’s shareholders $124.35 for each share, valuing the company at approximately $11 Billion.
• Last week, the sides confirmed the deal was being discussed, causing Beacon's stock to soar.

After being rejected in its first attempt to purchase Beacon Roofing Supply, QXO (QXO), a technology solutions company, and the roofing distributor reached 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."

In premarket trading on Thursday, shares of QXO were up 4%, and Beacon shares were up 2%. QXO shares were down nearly 90% compared to a year earlier, while Beacon’s shares were up more than 30%.