U.S. machinery rental firm Herc Holdings is poised to acquire smaller rival H&E Equipment Services for $3.83 billion excluding debt, after outbidding leader United Rentals, according to company statements on Tuesday.

Herc Holdings (HRI) announced a binding acquisition proposal and merger agreement with H&E Rentals (HEE) that will see it acquire the

H&E Equipment Services has accepted a bid from Herc Rentals of nearly $5.3bn, rebuffing an earlier takeover offer from equipment rental rival United Rentals. Herc’s cash-and-stock bid values H&E at nearly $500mn more than United’s all-cash offer,