R.H. Donnelley ( RHD) agreed to buy Dex Media ( DEX) in a deal valued at $4.2 billion, creating one of the nation's biggest publishers of directories.

Each Dex share will be exchanged for $12.30 in cash and 0.24154 Donnelley shares. Donnelley will also assume Dex's debt, which will probably be around $5.3 billion at the end of the year.

Dex shares ended Friday at $27.79, and Donnelley last closed at $63.26. Based on Donnelley's most recent closing price, the pact values Dex at around $27.58 a share.

The combined company will be the third-largest print and Internet directory publisher in the U.S. with revenue that would amount to around $2.7 billion a year on a pro forma basis. The company will have more than 600 directories with a total circulation of 73 million.

After the merger closes, Dex shareholders will own about 53% of the combined company. The new firm will use the R.H. Donnelley name and be based in Cary, N.C.

If you liked this article you might like

Spain to Play Netherlands for World Cup

Spain to Play Netherlands for World Cup

Wal-Mart: Analysts' Upgrades, Downgrades

Wal-Mart: Analysts' Upgrades, Downgrades

Netherlands Advances to World Cup Final

Netherlands Advances to World Cup Final

Apple: Analysts' Upgrades, Downgrades

Apple: Analysts' Upgrades, Downgrades

World Markets Mostly Lower Monday

World Markets Mostly Lower Monday