Air Transport Services Group (ATSG) agreed to be acquired and taken private by investment firm Stonepeak in a deal valued at $3.1 billion.

The cash consideration of $22.50 per share represents a premium of about 29% over Air Transport's closing share price on Nov. 1. Shares of the aircraft lessor's were up more than 26% intraday.

"The agreement with Stonepeak will deliver immediate and certain cash value to (Air Transport Services Group's) shareholders at a substantial premium to recent market prices," Joe Hete, executive chairman of Air Transport's board, said in a statement.

The transaction reflects the value of the company's in-demand midsize freighter and passenger aircraft fleet while positioning the company to further expand its global presence in the air cargo leasing market, Air Transport Services Group Chief Executive Mike Berger said.

The deal is expected to close in the first half of 2025, pending approvals by regulators and Air Transport Services Group's shareholders. At that time, the company will be delisted from the Nasdaq.

"(Air Transport Services Group's) deep relationships with some of the world's largest e-commerce companies and integrators, combined with the scale and capacity of their fleet and relentless focus on safety and on-time performance, gives us confidence in the company's trajectory as a sector leader," said James Wyper, head of transportation and logistics, at Stonepeak.

In August, Air Transport Services Group reported second-quarter revenue of $488.4 million, down from $529.3 million a year earlier, while adjusted per-share earnings declined to $0.19 from $0.57.

The company is expected to report fiscal third-quarter results on Friday.