Real estate website Zillow will buy competitor Trulia for $3.5 billion in stock, the companies said on Monday.
The deal is expected to close next year. Trulia shareholders will get 0.444 shares of Zillow stock for each Trulia share, giving them a one-third stake in the combined company at closing.
Trulia shares rose 18.5 percent in premarket trading to $66.80. The deal valued the stock at $68.38 per share, based on Zillow’s premarket price. (Zillow fell 3 percent in premarket trading).