NEW YORK (AP) — Canadian energy and services company Emera said Friday it will buy Teco Energy, an electric and gas utility that does business in Florida and New Mexico, for about $6.48 billion.
Emera Inc. said it will pay $27.55 per share of Teco Energy, a premium of about 31 percent over Friday's closing stock price. The companies valued the deal at $10.4 billion including debt. Shares of Teco Energy Inc. climbed 24 percent to $26.13 in aftermarket trading.
Emera, based in Halifax, Nova Scotia, has investments through the Northeastern U.S. and Canada as well as the Caribbean. It had almost $3 billion in revenue in 2014.
Emera CEO Chris Huskilson said Teco, which is based in Tampa, Florida, is an "ideal match" for his company.
The companies expect to complete the sale by mid-2016. They said Emera will continue Teco's efforts to sell its coal business and plans to complete that sale by the time its acquisition of Teco closes.