Signaling that both companies are looking to complete a transaction after months of back-and-forth, QXO and Beacon both confirmed March 10 that they are in negotiation talks for QXO to acquire Beacon.

QXO and roofing/exterior products distributor Beacon co-announced the news, stating that it involves a purchase price slightly higher than QXO’s previous offer, up 10 cents to $124.35 per share for a total consideration of about $11 billion.

That price would represent a 10.8X of Beacon’s consensus full-year 2025 EBITDA, and 10.1X its consensus full-year 2026 EBITDA, according to QXO.

A QXO spokesperson shared with MDM that the company is confident it can double the EBITDA of Beacon over the next five years. Through additional mergers and acquisitions investments, QXO plans to reach more than $50 billion in annual revenue.

Upon the news, Beacon shares had jumped nearly 8% as of 12:00 ET on March 10, while QXO’s was up about half a percent.

A combined news release stated that QXO is engaging in customary due diligence regarding Beacon’s business and that both sides are negotiating a definitive agreement.

Beacon has postponed its Investor Day that was set for March 13 in New York City.

“There can be no assurance that these discussions will result in a transaction,” the release advised.

The QXO spokesperson said the negotiations are “friendly” in nature.

A day after that announcement, QXO shared March 11 that it has further extended its tender offer — which was set to expire at the end of business on March 10 — to March 14. QXO noted that as of the end of business on March 10, about 18.05% of Beacon shares had been tendered into the offer and not withdrawn. That figure was at 19.18% at the end of March 3 and 17.3% at the end of Feb. 24.

The co-authored news release is the first sign of an amicable resolution in what had become a testy back-and-forth, with both companies trading barbs about facts and statements the other had shared regarding the previous offer price and Beacon’s valuation.

Meanwhile, the news puts QXO closer to its first acquisition after officially launching in mid-2024 and joining the New York Stock Exchange in January.

“If we come to an agreement with Beacon, we expect it to be the first of many acquisitions for QXO,” the spokesperson told MDM. “Beacon would be the ideal first acquisition for QXO as we enter the building products industry. It’s the second largest distributor of roofing products, a large, $70 billion to $80 billion industry.”

On March 7, QXO Founder, CEO and serial entrepreneur Brad Jacobs shared an open letter he wrote to Beacon employees to further court investors toward tendering their shares into QXO’s all-cash offer. The deadline for that offer had been extended to 5 p.m. ET on March 10. It was originally set for the end of Feb. 24 before first being extended to March 3.

MDM’s Take

Given QXO’s relentless pursuit of Beacon and the legwork it’s put in to facilitate a deal, we can expect a fast-tracked resolution if terms are agreed upon.

QXO has already proposed a slate of directors that would replace Beacon’s; has received antitrust clearance for the deal; and QXO has previously touted that a transaction is not dependent on any financing or due diligence conditions.

Beacon postponing its Investor Day figures to be a strong signal that the company is motivated to reach a transaction agreement with QXO.

More on QXO-Beacon

• Beacon 2024 Sales Near $10B Despite Sharp 4Q Seasonal Slowdown – Feb. 27
• QXO Unveils Slate of Directors to Replace Beacon’s, Gains Antitrust Clearance – Feb. 12
• QXO Says Beacon is Misrepresenting its Valuation to Shareholders (Premium) – Feb. 10
• QXO Urges Beacon to Let Shareholders Decide on Offer After Board Rejection– Feb. 6
• QXO Puts Ball in Beacon’s Court for Deal, Provides Communication Timeline (Premium) – Jan. 27