British pest control company Rentokil said on Tuesday it would buy U.S.-based peer Terminix Global in a $6.7 billion cash-and-stock deal, Trend reports with reference to Reuters.
The deal implies a value of $55 per Terminix share, representing a 47% premium to its closing price on Monday.
The boards of both the companies have backed the deal, which is estimated to close in the second half of 2022.
Rentokil expects the deal to generate cost savings of at least $150 million by the third year after deal close, and to add to its earnings in the first year.
Terminix's shareholders will own about 26% of the enlarged group, which will serve about 4.9 million customers around the world from 790 locations, the companies said.
Both Rentokil and Terminix provide commercial and residential pest management services.
