06:40 AM EDT, 05/15/2025 (MT Newswires) -- Dick's Sporting Goods (DKS) has agreed to acquire Foot Locker ( FL ) in a deal that implies an equity value of $2.4 billion and an enterprise value of $2.5 billion, the companies said on Thursday.

The agreement states that Foot Locker ( FL ) shareholders can elect to receive either $24 in cash or 0.1168 shares of Dick's common stock for each share of Foot Locker ( FL ), the parties said. Foot Locker's ( FL ) stock closed at $12.87 on Wednesday.

Dick's intends to finance the deal, which is slated to be completed in H2, with cash on hand and new debt, the companies said.

Foot Locker ( FL ), which reported $8 billion in sales in 2024, will operate as a standalone business within Dick's portfolio.

Dick's expects the deal to be accretive to earnings in the first full fiscal year post-close and to deliver between $100 million to $125 million in cost synergies in the medium-term achieved through procurement and direct sourcing efficiencies.

Shares of Foot Locker ( FL ) were up 82% in recent premarket activity on Thursday.