American Realty Capital Properties is buying American Realty Capital Trust IV in a cash-and-stock deal valued at about $3.1 billion.
Shares of ARCP nearly doubled in pre-market trading on Tuesday.
ARCP, a real estate investment trust, said that the deal—along with other recent transactions—will make it the second-biggest net lease REIT. After the transaction closes, ARCP will own 2,579 single tenant properties in 48 states and Puerto Rico.
Each outstanding share of ARCT IV will be converted to the right to receive 2.05 shares of ARCP stock or $30 per share in cash.
Both companies' boards approved the deal, but it still needs approval the companies' shareholders.
The buyout is expected to close by the third quarter's end.
ARCP's stock rose $13.53, or 91.4 percent, to $28.33 before the market open.