Office Depot Inc. (NYSE:ODP) said Wednesday that it will buy OfficeMax Inc. (NYSE:OMX) in an all-stock deal that values OfficeMax at about $1.19 billion.
Office Depot will issue 2.69 shares for each share of OfficeMax, which translates into a per-share value for OfficeMax of about $13.50, a 3.8 percent premium above the share's closing price on Tuesday.
Once the merger is complete, the resulting company will have revenue of nearly $18 billion, which will make it better able to compete with rival Staples, Inc. (Nasdaq:SPLS), according to Bloomberg News.
Office Depot and OfficeMax will have an equal number of seats on the board of the combined company.
Mike Obel works as Senior Editor, Copy Chief. Before that he was Markets Editor, assigning, editing and writing about business, markets, finance and economics. Before coming...