The new entity is expected to have an implied enterprise value of ~$6B and see accretive benefits immediately to EPS from shared costs.
The executive team will be led by Kevin Knight as Executive Chairman and Dave Jackson as CEO, both from Knight Transportation.
Aegis Capital thinks Knight is getting a good deal (46% of equity for 66% of the combined EBITDA).
Trucking stocks are solidly higher on the day as investors gauge if more M&A might come down the road. Celadon Group (CGI +9.3%), USA Truck (USAK +2.9%), YRC Worldwide (YRCW +2.8%), Landstar System (LSTR +1.7%), J.B. Hunt Transport Services (JBHT +1.9%) and Marten Transport (MRTN +2.4%) are some of the notable movers.