Shares of RetailMeNot (SALE) were surging by 48.71% to $11.52 during Tuesday morning trading after reports broke that the company has been acquired by Harland Clarke, a payment and marketing services firm, for $630 million in equity. 

Harland Clarke will pay $11.60 per share in cash and intends to use RetailMeNot to grow the reach of the coupons and promotions it manages.

Jefferies says the combination will "become the consumer savings destination of choice."

"This transaction advances RetailMeNot's goal of becoming a leading savings destination, and is a natural step forward in the growth trajectory of the company. The combined companies will create an omni-channel media network," the firm added.

Jefferies said the deal works out to about 7.4 times its 2018 adjusted Ebitda estimate of about $64.5 million. The company produced about $61.3 million in Ebitda in 2016 and is projected to post about $59.5 million in Ebitda in 2015.

Shares were trading at $11.52, up $3.77, or 49%, midday Tuesday. Shares closed at $7.75 Monday.

In response to the acquisition, which is expected to close in the second quarter of 2017, Credit Suisse said the deal and combined company does have some risks.

Other risks include, "potential changes to the way retailers appropriate attribution of digital offers to publishers like RetailMeNot; dependence on performance marketing networks as intermediaries to track digital coupon redemption; reliance on e-mail marketing to distribute offers; and continued dependence on Google for traffic," Credit Suisse analyst Paul Bieber wrote.

This is the second time RetailMeNot has been purchased. In 2010, it was purchased by WhaleShark Media as part of an acquisition spree that included Deals.com, Deals2Buy, Coupon7 and Cheapstingybargains. WhaleShark Media then changed its corporate name to RetailMeNot, prior to going public in 2013.

RetailMeNot went public in 2013 on the Nasdaq.

"RetailMeNot provides a new global digital channel to distribute our clients' offers that perfectly complements Valassis' current digital, mobile, mail and other print networks," Harland Clarke CEO Victor Nichols said.

LionTree Advisors is lead financial advisor to Harland Clarke Holdings. Moelis & Co. is also providing financial advice to the buyer. Wachtell, Lipton, Rosen & Katz is serving as legal adviser to Harland Clarke Holdings while Cleary Gottlieb Steen & Hamilton LLP is serving as legal adviser to Harland Clarke Holdings for financing matters.

Qatalyst Partners is serving as financial adviser and DLA Piper LLP (US) is serving as legal adviser to RetailMeNot in connection with the transaction.