The Swiss-based ABB group of companies is acquiring Memphis-based Thomas & Betts Corp. in a $3.9 billion deal, according to a joint announcement from both companies late Sunday, Jan. 29.

Both companies’ boards of directors have agreed to a deal in which ABB will buy Thomas & Betts for $72 per share in cash, or about $3.9 billion total. That price represents a 24 percent premium to Thomas & Betts’ closing stock price on Friday, Jan. 27.

The deal is scheduled to close by the middle of the year. It’s still subject to approval from Thomas & Betts shareholders, in addition to normal regulatory approvals.

As part of the deal, ABB will gain access to the Thomas & Betts network of more than 6,000 distributor locations and wholesalers in North America. Also, Thomas & Betts CEO Dominic Pileggi will head up a new global business unit.

Thomas & Betts is an electrical component maker that has a portfolio of more than 200,000 products marketed under more than 45 premium brand names. It has manufacturing facilities in 20 countries, and the Memphis company employs about 9,400 people, compared to the more than 18,000 people in ABB’s North American operations alone.

Worldwide, ABB – which is a leader in power and automation technologies for utility and industry customers – employs more than 130,000 people.

Among other highlights of the deal:

ABB has secured a $4 billion bridge financing commitment from Bank of America Merrill Lynch that will be repaid through a combination of cash and debt-issuance.

And ABB expects the deal to result in about $200 million in annual cost synergies by 2016.