02:58 PM EST, 11/04/2024 (MT Newswires) -- Air Transport Services Group ( ATSG ) agreed to be acquired and taken private by investment firm Stonepeak in a deal valued at $3.1 billion.

The cash consideration of $22.50 per share represents a premium of about 29% over Air Transport's closing share price on Nov. 1. Shares of the aircraft lessor's were up more than 26% intraday.

"The agreement with Stonepeak will deliver immediate and certain cash value to (Air Transport Services Group's ( ATSG )) shareholders at a substantial premium to recent market prices," Joe Hete, executive chairman of Air Transport's board, said in a statement.

The transaction reflects the value of the company's in-demand midsize freighter and passenger aircraft fleet while positioning the company to further expand its global presence in the air cargo leasing market, Air Transport Services Group ( ATSG ) Chief Executive Mike Berger said.

The deal is expected to close in the first half of 2025, pending approvals by regulators and Air Transport Services Group's ( ATSG ) shareholders. At that time, the company will be delisted from the Nasdaq.

"(Air Transport Services Group's ( ATSG )) deep relationships with some of the world's largest e-commerce companies and integrators, combined with the scale and capacity of their fleet and relentless focus on safety and on-time performance, gives us confidence in the company's trajectory as a sector leader," said James Wyper, head of transportation and logistics, at Stonepeak.

In August, Air Transport Services Group ( ATSG ) reported second-quarter revenue of $488.4 million, down from $529.3 million a year earlier, while adjusted per-share earnings declined to $0.19 from $0.57.

The company is expected to report fiscal third-quarter results on Friday.

Price: 22.02, Change: +4.62, Percent Change: +26.52