Jack In the Box has purchased Del Taco in a deal worth approximately $575 million.

For the acquisition, Del Taco will pay $12.51 per Share in cash. Del Taco stock closed Friday closing at $7.53 per shares. Jack in the Box will finance the acquisition through additional securitization bonds.

Darin Harris, Jack in the Box CEO, stated that “this is a natural mixture of two like-minded challenger brands with outstanding opportunities for growth.” Together, Jack in the Box, Del Taco and Del Taco will reap the benefits of a stronger financial structure, which allows them to invest in digital and technological capabilities and increase unit growth.

Premarket trading saw Jack in the Box shares rise less than 1%. Jack in the Box shares have fallen by 9% this year giving them a market value $1.82 billion. Premarket trading saw Del Taco shares rise nearly 65% to $12.36 per Share, taking its market value from $274million to $450million.

Del Taco operates 600 restaurants in 16 states. This makes it the second-largest Mexican fast food chain, by number of restaurants, after Yum Brands Taco Bell. It earned 11 cents per diluted share on $124.3 million in revenue during its third quarter.

The combined company will be able to serve more than 2,800 locations in 25 states. The acquisition is expected to close within the first three months in 2022.

Jack in the Box predicts that the deal will increase its earnings per share by the mid-single digits in the initial year, excluding transaction costs. The company expects to realize approximately $15 million in benefits by the end of fiscal 2023. This includes supply chain savings and knowledge sharing initiatives.