Boeing ( BA ) stock is trading higher on Monday following the company’s announcement that it will acquire Spirit AeroSystems ( SPR ) .

What Happened: Boeing ( BA ) entered into a definitive agreement to purchase Spirit AeroSystems ( SPR ) at $37.25 a share, a 30% premium to Spirit’s closing stock price on February 29.

The total equity value of the merger is $4.7 billion. Including Spirit’s net debt, the transaction is valued at about $8.3 billion.

Boeing’s purchase of Spirit AeroSystems ( SPR ) includes most of Spirit’s business linked to Boeing’s commercial planes, plus other parts involving commercial, defense, and aftermarket operations.

Boeing ( BA ) said it will work with Spirit to maintain operational continuity for Spirit’s customers and acquired programs, such as collaborating with the U.S. Department of Defense and Spirit’s defense clients on security and defense missions.

“By reintegrating Spirit, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes – centered on safety and quality,” said Dave Calhoun, CEO and president at Boeing ( BA ).

In addition, Spirit and Airbus have entered into a binding term sheet for Airbus to acquire certain Spirit assets.

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BA Price Action: Boeing ( BA ) stock, at the time of publication, is trading 1.95% higher at $185.57, according to data from Benzinga Pro.

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