Shares of WCI Communities Inc. rocketed 37% in premarket trade Thursday, after the home builder agreed to be bought out by Lennar Corp. in a deal valued at $643 million. Under terms of the deal, Lennar will pay $23.50 in cash and stock for each WCI share outstanding, representing a 37% premium to Wednesday's closing price. Lennar expects to pay half of per-share price in cash and half in its common stock. WCI shareholders will vote on the deal in December or January, and if approved, Lennar expects the deal to close "promptly" after. "WCI's land portfolio dovetails perfectly with our own Florida footprint and expands our product offering to capture more of the move-up market," said Lennar CHief Executive Stuart Miller. "Our combined presence in the premier coastal Florida markets will drive growth and allow significant cross and dual brand marketing opportunities." Through Wednesday, WCI shares had tumbled 23% year to date, Lennar's stock had lost 11%, the iShares U.S. Home Construction ETF had gained 1.1% and the S&P 500 had advanced 5.8%.
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