Under the deal announced Monday, Integrys stockholders will receive 1.128 Wisconsin Energy shares and $18.58 in cash for each share they own. That amounts to $71.47 per Integrys share, a 17 percent premium to the company's Friday closing stock price of $60.95. The payout will be 74 percent in stock and 26 percent in cash.
Shareholders of Chicago-based Integrys will own approximately 28 percent of the combined company. The company's shares surged $7.05, or 11.6 percent, to $68 in premarket trading about 30 minutes ahead of the market open.
Wisconsin Energy and Integrys put the transaction's total value at $9.1 billion including the assumption of $3.3 billion in debt.
Wisconsin Energy Chairman and CEO Gale Klappa will serve in the same posts for the combined company. Integrys Chairman and CEO Charlie Schrock will stay in his current roles until the acquisition is complete. He will retire upon the closing.
WEC Energy will be headquartered in metropolitan Milwaukee with operating headquarters in Chicago, Green Bay and Milwaukee. Wisconsin Energy is based in Milwaukee.
Both companies' boards unanimously approved the deal, which is targeted to close in the summer of 2015. It still needs the approval of both companies' shareholders, as well as approvals from the Federal Energy Regulatory Commission, Federal Communications Commission, Public Service Commission of Wisconsin, Illinois Commerce Commission, Michigan Public Service Commission and the Minnesota Public Utilities Commission.
Shares of Wisconsin Energy fell $1.39, or 3 percent, to $45.50 in premarket trading.