Meredith Corporation (MDP)  said Sunday evening that it will acquire Time Inc. (TIME)  for $18.50 a share in an all cash transaction valued at $2.8 billion. The deal, which is expected to close in the first quarter, represents a 46% premium over the closing price of Time Inc. on Nov 15 which is when media reports surfaced of Meredith's interest.

If joined in 2016, Meredith estimates the combined company would have had sales of $4.8 billion and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $700 million. Meredith believes it could ring out $400 million to $500 million in synergies within the first two years of operations likely through staff consolidation.
 
In addition to securing $3.55 billion in new financing from a consortium of RBC Capital Markets, Credit Suisse, Barclays and Citigroup, Meredith has scored a $650 million preferred equity commitment from Koch Equity Development (KED). KED is an investment fund backed by conservative-leaning billionaires Charles and David Koch.

More from Video

It's Still Netflix and Chill on Wall Street

It's Still Netflix and Chill on Wall Street

Video: Here's How Goldman Sachs May Change Under David Solomon

Video: Here's How Goldman Sachs May Change Under David Solomon

3 Reasons Why Netflix Bulls Are Getting Their Face Ripped Off After Earnings

3 Reasons Why Netflix Bulls Are Getting Their Face Ripped Off After Earnings

Shark Tank Star Kevin O'Leary Reveals Why Stocks Haven't Corrected Recently

Shark Tank Star Kevin O'Leary Reveals Why Stocks Haven't Corrected Recently

Podcast: How Exchange Traded Funds Can Obliterate a Stock Sector

Podcast: How Exchange Traded Funds Can Obliterate a Stock Sector