Private equity firm Sycamore Partners is buying office supplies chain Staples for $6.9 billion.
The companies said Wednesday that shareholders of Framingham, Massachusetts-based Staples will get $10.25 per share.
Staples' stock closed Wednesday up 77 cents, or 8.4 percent, to $9.93, fueled by a late-afternoon report of a deal. The stock rose another 1.5 percent in extended trading after the deal was announced.
Changing shopping patterns, like the shift to online buying, have hurt office-supplies megastores like Staples. Amazon has become a prime competitor to Staples for corporate customers.
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The deal with New York-based Sycamore Partners will allow Staples to adjust to the challenges as a private company.
Staples' sales have declined 6.1 percent over the past five years to $18.2 billion.
Staples Inc. is the largest "big box" office-supply chain, but it cut the number of stores it runs to roughly 1,600 from nearly 2,300 in 2012, according to FactSet.
Last year, Staples shredded a proposed $6.3 billion merger with rival Office Depot after encountering stern resistance from antitrust regulators that culminated in a federal judge blocking the deal.
Staples confirmed in April that it was exploring a possible sale. Sycamore Partners' Managing Director Stefan Kaluzny said the deal will help Staples pursue its long-term strategy.
"With an iconic brand, a winning strategy, and dedicated and passionate associates who are deeply focused on the customer, Staples is truly an outstanding enterprise," Kaluzny said.
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The companies said they expect this deal to close by the end of the year.