DOWNERS GROVE, Ill. (AP) — ATC Technology Corp. said Monday it has agreed to be acquired by privately held Genco Distribution System Inc. for $512.6 million in cash.
ATC, an engineering and supply chain logistics firm based in Downers Grove, said the boards of ATC and Genco have approved the deal. Shareholders still need to approve the acquisition.
The deal would make ATC a subsidiary of Genco, a logistics services company based in Pittsburgh.
The deal calls for ATC shareholders to get $25 per outstanding share, a 43 percent premium over the company's closing price on Friday.
ATC shares climbed $6.82, or 39 percent, to $24.25 in pre-opening trading Monday.
Todd R. Peters, ATC's president and CEO, said the deal serves the best interest of its stockholders, customers and employees.
"Genco broad geographic footprint and service offerings will enhance ATC's current offerings to both current and potential customers, and create the potential for faster growth and greater customer diversification than exists today as a standalone business, he said
Genco plans to pay for the ATC acquisition through loans and by selling $125 million of company shares.
The acquisition is expected to close by the fourth quarter.