Shares of Swift Transportation (SWFT)  closed higher by 23.70% to $24.77 on Monday afternoon, following its plan to merge with fellow trucking company Knight Transportation. (KNX) - Get Knight-Swift Transportation Holdings Inc. Class A Report

The boards of both companies unanimously approved the deal, which values both companies together at about $5 billion. The deal states that each Swift share will convert to 0.72 share of the newly combined company in a reverse stock split. Knight shares will be exchanged one-for-one.

"When the two companies began discussions, we had four goals in mind: create a company with the best strategic position in our industry; identify significant realizable synergies that would create value for both sets of stockholders; create a business that over the long-term will operate at Knight's historical margins and financial returns; and agree on a leadership and corporate governance framework that will benefit all stakeholders. I am confident we have achieved those goals," Knight executive chairman Kevin Knight said.

Shares of Knight Transportation closed in the green as well, having gained by 13.38% to $34.75 this afternoon. 

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This article has been updated from its original publish time of 8:18 a.m.