NEW YORK (TheStreet) -- Shares of Journal Media Group (JMG) were gaining 42.2% to $11.80 on Thursday following the announcement that Gannett (GCI) will acquire the Milwaukee-based newspaper company for about $280 million.

The USA Today publisher will pay $12 a share in cash to acquire all outstanding shares of Journal Media Group. The price represents a 44.6% premium over the company's Wednesday closing price.

The acquisition will ad about $450 million to Gannett's annual revenue, and about $60 million to its adjusted EBITDA.

"This transaction marks a critical next step in the transformation of our industry as we build local media brands that matter at a time when operational scale is a competitive advantage," Journal Media Group President and CEO Tim Stautberg said in a statement.

About 1.4 million shares of Journal Media Group were traded by 9:49 a.m. Thursday, above the company's average trading volume of about 70,000 shares a day.

JMG Chart JMG data by YCharts