Beacon Roofing Supply (BECN) agreed to be acquired by QXO (QXO) in an $11 billion deal, less than a month after the building products distributor rejected a slightly lower bid from QXO.

Beacon's shareholders will receive $124.35 per share in cash, which is marginally above QXO's prior $124.25 offer that Beacon said last month significantly undervalued the company.

At the end of January, QXO launched a tender offer to acquire Beacon's shares at $124.25 apiece, saying at the time that the bid represented a 37% premium over Beacon's 90-day unaffected average price.

"Since QXO made its initial offer last November, we have evaluated strategic alternatives to enhance value for all of our shareholders," Beacon Chairman Stuart Randle said in a joint statement. "Following our Board's comprehensive review, we concluded that this transaction is in the best interests of Beacon and its shareholders given the immediate premium and certainty of value in cash it offers, particularly in an uncertain environment."

Shares of Beacon climbed 1.9% in late afternoon trade, while QXO's were up 2.7%.

QXO extended its tender offer, which now carries a price tag of $124.35, to March 31. In addition, QXO has withdrawn its 10 board nominees for election at Beacon's 2025 annual meeting of shareholders.

At the end of February, Beacon's board recommended that shareholders not tender their shares in favor of the previous offer. Earlier this month, the companies said they were in talks at the higher $124.35 price point.

"Acquiring Beacon is a key milestone in our plan to create substantial shareholder value and establish QXO as a leader in the $800 billion building products distribution industry," said QXO Chief Executive Brad Jacobs. "We will be applying our proven playbook to a platform ripe to deliver above-market organic growth and significant margin expansion."

The acquisition has already received antitrust clearance in the US and Canada, the companies said.