H&E Equipment Services, Inc. (Nasdaq: HEES) has entered into a definitive merger agreement with Herc Holdings Inc. (NYSE: HRI) under which Herc will acquire H&E Equipment Services in a cash and stock transaction. The agreement was unanimously approved by the boards of both companies.

Under the terms of the merger, H&E shareholders will receive $78.75 in cash and 0.1287 shares of Herc common stock per H&E share. The transaction will be conducted through a tender offer followed by a merger. Upon completion, H&E will become a wholly owned subsidiary of Herc.

H&E had previously entered into a merger agreement with United Rentals but has now terminated that agreement, with Herc covering the termination fee.

The deal is expected to close following regulatory approvals and customary closing conditions.