MISSISSAUGA, Ont. -- Bird Construction Inc. will acquire Calgary-based construction services company Stuart Olson Inc. in a deal valued at $96.5 million.

The combined business would employ about 5,000 people across Canada and generate about $2.5 billion in annual revenue. It also expects $25 million in cost savings by the end of 2021.

Under the plan, Mississauga, Ont.-based Bird Construction will pay a combination of $30 million in cash and $66.5 million worth of common shares valued at $6.32 each.

Bird shares closed Wednesday at $6.68, up 14 cents, at the Toronto Stock Exchange. Stuart Olson shares lost nearly two-thirds of their value and closed at 32.5 cents, down 56.5 cents.

Most of the payment will go to Stuart Olson's lenders and debenture holders and only about $4 million will go to current shareholders of Stuart Olson.

The transaction will be facilitated by Canso Investment Counsel Ltd., which will acquire Bird shares for $40 million cash.