Forward Air Amends Agreement To Acquire Omni Logistics; Omni Shareholders Will Receive $20M In Cash, Instead Of $150M Initially Agreed, And 35% Of Forward's Pro Forma Common Equity, As Compared To The 37.7% Contemplated By The Original Agreement
Portfolio Pulse from Benzinga Newsdesk
Forward Air Corporation (NASDAQ:FWRD) has amended its merger agreement with Omni Logistics, reducing the cash payment to Omni shareholders from $150M to $20M and adjusting their equity stake from 37.7% to 35%. This amendment resolves litigation between the parties, who now aim to close the transaction by the end of the week. Forward's CEO believes the acquisition will accelerate their growth strategy and create significant long-term shareholder value.
January 22, 2024 | 3:58 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Forward Air's amended agreement with Omni Logistics reduces cash payout and equity stake, resolving litigation and aiming for a swift transaction close.
The amendment of the merger agreement is likely to be viewed positively by investors as it reduces the immediate cash outlay from $150M to $20M, which could improve Forward Air's short-term liquidity. The reduction in equity stake offered to Omni shareholders from 37.7% to 35% may also be seen as favorable for existing shareholders, as it results in less dilution of their shares. The resolution of litigation removes a significant uncertainty and could lead to a positive market reaction in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100