Staples to buy Office Depot in $6.3 billion deal

NEW YORK (MarketWatch) -- Staples announced on Wednesday an agreement to buy Office Depot in a cash and stock deal that values the fellow office supply retailer at $6.3 billion. As part of the agreement, Office Depot shareholders will get $7.25 in cash and 0.2188 shares of Staples' stock for each Office Depot stock they own. Based on the closing prices of Feb. 2, before media speculation of a deal emerged, the deal values Office Depot shares at $11, or a 44% premium. Staples expects the combination to generate at least $1 billion in cost savings by the third full fiscal year after the deal closes. Staples' stock slumped 2.7% in premarket trade. Office Depot's stock, which soared 22% on Tuesday, was still halted for news dissemination.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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