Signet Jewelers Ltd. has entered into a definitive agreement to buy Zale Corp, reports say. The deal is expected to be worth an enterprise value of $1.4 billion (which includes stock price and debt). The value is 41 percent above Zale’s closing share price as on February 18, and Signet will pay for $21 per share in cash, reports add.

The buyout is Signet’s biggest so far, reports add. This transaction will lead to a combined 3,600 retail locations in the US, Canada, Puerto Rico and the UK. The agreement will lead to Mike Barnes, Signet CEO to operate in the same position in the new combined company and Theo Killion, Zale CEO, will operate Zale as a separate division. Signet views this transaction as one that will help further diversify its business and increase its global footprint. For Zale, this acquisition will enable it to regain growth, having faced stagnating sales. This agreement is subject to approvals of Zale stockholders, regulatory approvals and customary closing conditions, reports say.