Teen-apparel retailer rue21 Inc said it agreed to be acquired by private equity firm Apax Partners in a deal valued at about $1.1 billion.

Apax will pay $42.00 per rue21 share in cash, representing a premium of 23 percent to the stock's Wednesday close.

(Reporting by Siddharth Cavale in Bangalore; Editing by Roshni Menon)