Freight forwarding concern EGL ( EAGL) agreed to go private in a $1.7 billion buyout led by its chief executive.

Under the deal, EGL shareholders will receive $38 a share, an 8.7% premium over Friday's closing price of $34.96. The price represents a 27% premium over EGL's closing price on Dec. 29, the last day before an initial buyout proposal was made.

Chairman and CEO James Crane and private equity firm General Atlantic originally offered to buy EGL for $36 a share. But that deal fell through in February after EGL posted weaker-than-expected fourth-quarter results, leading General Atlantic to pull out of the purchase.

Under the new agreement, Crane will team up with private equity firm Centerbridge Partners and Woodbridge Co., the investment vehicle for Canada's Thomson family. Crane, who founded EGL, owns 7.07 million of the company's shares.

The transaction is expected to close in the second or third quarter.

Shares of EGL recently were up $1.72, or 4.9%, to $36.68.

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