The company expects to finance the transaction through bank debt and a securitization of its accounts receivable portfolio.
The merger is expected to be accretive in the first year at a high single-digit percentage.
What to watch: Zale's international business and strong online business strengthen a couple of areas Signet had room to improve. The combined company will also yield some improved pricing power.
Premarket action: ZLC +40.8% to $20.99 and SIG +11.0% to $88.