Prologis and Indianapolis-based Duke Realty Corporation have completed their $26 billion merger agreement. In this major deal, Prologis will acquire Duke Realty in an all-stock transaction.

Both companies announced today that their boards of directors have unanimously approved the transaction.

“We have admired the disciplined repositioning strategy the Duke Realty team has completed over the last decade,” said Prologis co-founder, chief executive officer and chairman Hamid Moghadam, in a written statement. “(Prologis) has built an exceptional portfolio in the U.S. located in geographies we believe will outperform in the future. That will be fueled by Prologis’ proven track record as a value creator in the logistics space. We have a diverse model that allows us to deliver even more value to customers.”

How big is this acquistion? Proglois now acquires 153 million square feet of operating proproperties in 19 major U.S. logisics locations and 11 million square feet of developments in progress, about $1.6 billion in total expected investment.

Prologis is also acquiring 1,228 acres of land owned and under option with a build-out of about 21 million square feet.

“This transaction is a testament to Duke Realty’s world-class portfolio of industrial properties, long-proven success and sustainable value creation we’ve delivered over the years,” said Duke Realty chairman and chief executive officer Jim Connor, in a written statement. “We are confident that this transaction – including the meaningful opportunity it provides for shareholders to participate in the growth and upside from the combined portfolio — is in the best long-term interest of Duke Realty shareholders.”

Following personal dialogue between the executive teams of both companies, Prologis first sent a letter to Duke Realty on Nov. 29, 2021, regarding a potential transaction. On May 3, 2022, Prologis modestly increased the proposed exchange ratio – representing a 34% premium to Duke Realty’s stock price at the time– in a final attempt to engage privately to reach agreement on a mutually beneficial transaction. Duke Realty rejected the Prologis proposal that same evening.

The negotiations are now over, and the acquisition will move forward.