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Dick's Sporting Goods Inc. said Monday it has agreed to acquire Golf Galaxy Inc. for about $225 million.
The announcement sent Golf Galaxy shares up $2.67, or 17.1 percent, to $18.32 in aftermarket trading on the INET electronic exchange, after retreating 17 cents to close at $15.65 on the Nasdaq.
Dick's shares rose $1.63, or 3.3 percent, to $50.55 in aftermarket trading, after adding 16 cents to close at $48.92 on the New York Stock Exchange.
Under the agreement, Golf Galaxy shareholders will receive $18.82 for each share of common stock. The offer represents a 20 percent premium over the company's Monday closing stock price.
The deal, which is subject to Golf Galaxy shareholder and regulatory approval, will be financed with Dick's existing credit facility. It is expected to close by Feb. 6.
In addition, Dick's said certain Golf Galaxy shareholders have agreed to vote 19.9 percent of the outstanding common stock in favor of the acquisition. Dick's said it expects the deal to be accretive in fiscal 2007.
Eden Prairie, Minn.-based Golf Galaxy currently operates 61 stores in 24 states, and sells golf equipment online and through a catalog. The company posted $250 million in sales for the year ended Aug. 26.
Peter J. Solomon Securities Co. Ltd. provided financial advisory services to Dick's in connection with the deal.
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This post first appeared on Golf In Spain: Golf Courses And Golf Information, please read the originial post: here

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