The boards of Clipper Logistics plc and GXO Logistics Inc said they’ve reached agreement “on the key terms of a possible cash and share offer for Clipper by GXO”.Of course that doesn’t mean it’s a done deal, but Clipper said that if a firm offer is made on the agreed terms, it will unanimously recommend it to Clipper shareholders.

The two firms said it’s “a compelling strategic combination, which significantly increases the opportunities for both businesses in the high-growth e-commerce/e-fulfilment areas, creating significant value for all stakeholders”.It will combine “highly complementary service offerings, customer portfolios, and footprints in the UK and Europe, enabling significant cross-selling of capabilities across a large combined customer base”.The terms value Clipper at over £900 million and this underlines how important the unglamorous task of fulfilment has become in a world driven more and more by omnichannel sales.Clipper’s share price rose 14% in early trading on Monday.So what are the details of the deal? GXO is aiming to buy Clipper for a combination of cash and new GXO shares. The offer comprises 690p per share in cash, as well as new shares to imply a valuation of 230p based on the trailing GXO three-month average price. It all means a total valuation of 920p per Clipper ordinary share.There’s also a “mix and match” option under which Clipper shareholders can vary the proportions of cash and shares they receive.GXO has already had “irrevocable undertakings to vote in favour of an offer” from Clipper shareholders who own almost 24% of the shares, including from its Executive Chairman, CEO, and CFO.