Trucking company Yellow Corp. said that it will acquire rival Roadway in a cash and stock deal valued at about $966 million.

Trucking company Yellow Corp. said Tuesday that it will acquire rival Roadway in a cash and stock deal valued at about $966 million.

The deal links two of the largest trucking companies in the transportation industry. The combined company, to be known as Yellow-Roadway, will have combined annual revenue of $6 billion with domestic and international operations.

Roadway has outmaneuvered its competition by using technology to cut costs and track its workers. The companies said in a statement that they planned to leverage "service capabilities and technologies" once the merger closes. The deal is expected to deliver annual cost savings of $45 million by the end of the second year. In five year, the companies should be able to save more than $125 million, the companies said.

Under the terms of the deal, Yellow values Roadway at $48 a share with that sum evenly split between cash and stock. Yellow will also assume $140 million in Roadway debt.

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