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Investing.com-- QXO Inc (NYSE:QXO) has entered a deal to acquire Beacon Roofing Supply Inc (NASDAQ:BECN) at a slightly higher price than earlier offered, the Wall Street Journal reported on Wednesday citing comments from executives.
The building products distributor will pay $124.35 a share for Beacon, valuing the latter at about $7.7 billion or $11 billion including debt, the WSJ report said. The deal will likely be announced on Thursday.
QXO had earlier this week announced a fresh equity raise of $830 million, which it will likely deploy towards the Beacon deal.
Reports of the deal come after several earlier approaches by QXO for Beacon, including a potential hostile takeover attempt. But the two had earlier this year signaled they were in friendly talks over a takeover.
QXO had in November offered $124.25 a share for Beacon, but Beacon had argued that the deal undervalued its business. This saw QXO begin directly approaching shareholders with its offer, to which Beacon had responded with a so-called poison-pill defense.
The deal is expected to greatly bolster QXO’s supply chains and sales reach, with Beacon’s business being largely complementary to QXO.
Beacon is the biggest distributor of roofing materials and related building goods in the U.S. and Canada.