Fortis Inc., a Canadian utility company, is buying power provider UNS Energy Corp. for $2.5 billion, expanding its business into Arizona.
Fortis will pay $60.25 per share for UNS Energy. That's 31 percent above UNS Energy's closing price of $45.84. Fortis will also assume $1.8 billion in debt. The companies said Wednesday that they value the deal at $4.3 billion.
UNS Energy, which is headquartered in Tucson, Ariz., provides power and natural gas service to over 600,000 customers in the state.
The deal is expected to close by the end of 2014.
Shares of UNS Energy are up $13.56, or 30 percent, to $59.40 in after-hours trading.