Jack in the Box (JACK) is buying Del Taco Restaurants Inc. (TACO) in a deal valued at roughly $575 million. 

The fast-food burger chain is expected to pay $12.51 per share in cash for the acquisition in a deal set to close in the first quarter. This purchase price represents a 166% premium to the chain's closing price on Friday, MarketWatch noted.

“This is a natural combination of two like-minded, challenger brands with outstanding growth opportunities,” Darin Harris, Jack in the Box’s chief executive officer, said in a statement. “Together, Jack in the Box and Del Taco will benefit from a stronger financial model, gaining greater scale to invest in digital and technology capabilities, and unit growth for both brands.”

Del Taco, the nation's second-largest Mexican fast-food chain, has roughly 600 restaurants across 16 states. 

After it combines with Jack in the Box, the two chains will have more than 2,800 restaurants spanning 25 states. Though their stores will be largely concentrated on the West Coast, they will also have restaurants in Alabama, Florida, Georgia and Michigan. 

Jack in the Box had revenue of $1.14 billion for fiscal 2021, which ended in October. Del Taco had $521 million over the same period, The Wall Street Journal reported. The buyer said the deal would add to its earnings in the first year and be more meaningfully accretive in the second year.

“This acquisition fits squarely in our strategic pillars and helps us create new opportunities for the franchisees, team members and guests of both brands,” Harris said.

As of 2:58 p.m. ET on Monday, shares of Del Taco were trading at $12.52, up $4.99, or 66.2%. Shares of Jack in the Box were trading at $80.53, down $3.47, or 4.13%.