Staples has announced plans to acquire all outstanding shares of fellow office supply retailer Office Depot, in a merger that values Office Depot at $6.3 billion.
The agreement has been unanimously approved by each company's board of directors and is expected to close by the end of the year.
"This is a transformational acquisition that enables Staples to provide more value to customers, and more effectively compete in a rapidly evolving competitive environment," says Ron Sargent, chairman and chief executive officer, Staples. "We expect to recognize at least $1 billion of synergies as we aggressively reduce global expenses and optimize our retail footprint. These savings will dramatically accelerate our strategic reinvention, which is focused on driving growth in our delivery businesses and in categories beyond office supplies."