Billionaire dealmaker Brad Jacobs has secured a major financial commitment to accelerate his plans for the building products sector. On January 5, 2026, an investor group led by Apollo Global Management (APO) agreed to invest $1.2 billion into QXO Inc (QXO), a tech-forward roofing, waterproofing, and complementary building products distribution company. This capital infusion arrives as a vote of confidence in Jacobs’ vision to consolidate a fragmented industry through aggressive mergers and technology.
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The investment is structured as convertible perpetual preferred stock, providing QXO with immediate liquidity while signaling long-term institutional backing. Here are the key factors driving this billion-dollar deal.
Apollo Strengthens QXO’s Acquisition Strategy
The new funding specifically supports QXO’s strategy to roll up the building products distribution market. As part of the deal, the investors have promised to buy the stock to pay for at least one big takeover by the middle of July. If a contract is signed before that date, they can even push this promise out for another full year. For Jacobs, this represents ammunition for his next big move in an industry he believes is ripe for disruption.
Preferred Terms Offer Steady Yield
The investment comes with specific financial guardrails and incentives. The convertible preferred stock will pay an annual dividend of 4.75%, offering the Apollo-led group a steady return. Additionally, the shares have a conversion price of $23.25, which sits about 18% above the company’s recent closing price. This structure allows investors to benefit from the stock’s potential upside while protecting their initial capital with a senior position in the company’s structure.
Jacobs Targets the $50 Billion Revenue Milestone
Since founding QXO in late 2023, Jacobs has been transparent about his mountaintop goal, which is reaching $50 billion in annual revenue within a decade. The company made its first major move in April 2025 by acquiring Beacon Roofing Supply for $11 billion. With Apollo’s backing, QXO is now reportedly in talks with seven potential targets, some of which generate up to $20 billion in revenue. Jacobs is betting that building products, ranging from HVAC equipment to construction materials, will remain a physical necessity that cannot be replaced by digital trends.
Market Reaction Signals Growth Expectations
Wall Street responded positively to the news, with QXO shares jumping more than 8% in premarket trading on Monday. Analysts note that the involvement of Apollo, which manages over $900 billion, makes the Jacobs plan look more trustworthy. Because they worked together before at United Rentals (URI), Apollo is again betting that Jacobs can grow a big company using new technology and smart buyouts.
Is QXO a Good Stock to Buy?
QXO Inc. currently holds a Strong Buy consensus rating among Wall Street analysts. This rating is based on a unanimous rating of nine Buys issued within the last three months. The average 12-month QXO stock price target is $30.00, pointing to a significant 52% upside from the last recorded price.
