Shares of Nesco Holdings Inc. nsco rocketed 53% toward a 15-month high in premarket trading Thursday, after the provider of equipment and services to the electric utility transmission, telecommunications and rail markets announced a deal to buy Custom Truck One Source (CTOS) for $1.475 billion, and an $850 million equity investment from an affiliate of Platinum Equity. The Platinum investment will be in exchange for Nesco common stock priced at $5.00 a share, which is 14.9% above Wednesday's closing price of $4.35. In addition, some existing shareholders of CTOS, including current CTOS majority owner The Blackstone Group Inc. bx, are expected to invest $100 million in Nesco, also in exchange for Nesco stock price at $5.00. After the closing of the CTOS purchase, which is expected to occur in the fist quarter of 2021, Platinum is expected to own approximately 57% of Nesco's outstanding stock, following an additional equity investment of up to $200 million from Platinum. Nesco's market capitalization was $213.3 million as of Wednesday. Nesco and CTOS expect to achieve $50 million in annual cost synergies from the merger. Nesco's stock has gained 5.8% year to date through Wednesday, while the S&P 500 spx has advanced 13.6%.