QXO said it has secured a $1.2 billion equity investment led by funds managed by affiliates of Apollo Global Management.

The Jan. 5 announcement indicates QXO is bolstering its balance sheet as it pursues acquisition-driven growth and expands its B2B ecommerce and digital capabilities.

It will make the investment made through a new series of convertible perpetual preferred stock. QXO intends to fund one or more qualifying acquisitions through July 15, 2026. It also said it may extend the commitment for up to an additional 12 months if the company enters into a definitive acquisition agreement before the initial period expires. Any issuance of the preferred stock will close at or around the completion of a qualifying acquisition.

QXO is the largest publicly traded distributor of roofing, waterproofing and complementary building products in North America.

About the $1.2 billion investment into QXO for acquisitions

It said the financing enhances its financial flexibility as it targets consolidation in a highly fragmented market. The company has positioned acquisitions as its primary driver of long-term growth. The acquisitions are supported by investments in technology designed to modernize procurement, pricing, customer self-service and fulfillment across its expanding footprint.

These digital investments are increasingly central to competition in building-products distribution. In that space, contractors and commercial customers are pushing for more seamless online ordering, account-based pricing and integrated job-site delivery. Historically slower to adopt ecommerce than other wholesale sectors, building-products distributors have accelerated digital spending as scale becomes critical to supporting complex logistics and customer-specific workflows.

Under the terms of the agreement, the preferred stock will pay a 4.75% annual dividend and is convertible into QXO common stock at an initial conversion price of $23.25 per share.

It will sell the securities in a private transaction. They have not been registered under the Securities Act of 1933. QXO said it plans to use commercially reasonable efforts to file a prospectus supplement with the Securities and Exchange Commission. It will register the resale of the preferred stock and the common shares issuable upon conversion following any issuance.

QXO has said it aims to become a technology-enabled leader in the estimated $800 billion building-products distribution market. It has publicly targeted $50 billion in annual revenue within the next decade through a combination of acquisitions and organic growth.

Apollo said the investment aligns with its strategy of providing long-term capital to companies pursuing growth through operational expansion and technology investment. As of Sept. 30, Apollo reported approximately $908 billion in assets under management.

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