06:03 AM EDT, 04/23/2024 (MT Newswires) -- (Updates with share price movements in headline and last paragraph.)

Hibbett ( HIBB ) said on Tuesday that it has agreed to be acquired by the UK's JD Sports Fashion for about $1.1 billion in cash.

Under the agreement, JD Sports Fashion will pay $87.50 per share for all outstanding shares of Hibbett ( HIBB ), a US apparel and accessories sports-themed retailer that also owns the City Gear brand.

Hibbett ( HIBB ) said its board of directors has already approved the merger, which is expected to close in the second half of 2024, subject to satisfaction of closing conditions and approval from Hibbett's ( HIBB ) shareholders as well as regulatory approvals.

Under the terms of the agreement, Hibbett ( HIBB ) said that it has agreed to suspend the payment of dividends on its common stock, as well as the purchase of shares under its existing stock repurchase program, through the closing of the transaction.

The company said that the transaction is not subject to a financing condition and that following the closing of the deal, it will cease to be a publicly traded company.

Mike Longo will remain president and chief executive of Hibbett ( HIBB ), which will maintain its corporate headquarters in Birmingham, Alabama, the company added.

Shares of Hibbett ( HIBB ) were up by approximately 19% in recent premarket trade on Tuesday.