In the major report released Wednesday Staples plans to buy out their rival, Office Depot with a $6.3 million dollar agreement. The idea is that the earnings will be more lucrative on a larger scale.

This deal has stemmed from several months of stress by the hedge fund group, Starboard Value, which stated that they would alter the management at Staples if they did not comply with acquiring Office Depot. Staples starting to look over the deal in the middle of last summer and went into negotiations with Office Depot late September.

In 2013 Office Depot obtained OfficeMax, which would corner the market when it comes to office supplies. The result made Staples close 12% of their stores. They currently have around 1,300 sites in America and the securities show about 1,900.

In the current competitive digital market, Staples and Office Depot, are becoming more allies than rivals. During these times people are less inclined to purchase things such as pencils and pens. With larger companies such as Walmart and Amazon, Staples has felt the importance of sustainability.

With the current deal in place Staples will be paying $7.25 in cash and 0.2188 of a share in Staples stock for every share with Office Depot. This makes up for a 44% premium ahead of the Office Depot’s price prior to the new look Monday.

The chief executive of Staples, Ron Sargent, stated that the company is ready to save at least one billion dollars with the merger. The savings will give a major boost to their reinvention which will be geared towards delivery services and products beyond the traditional office supplies. Sargent also stated that both Office Depot and Staples had reviewed the regulatory environment, and he believes that each board will approve the deal.

This acquisition would bring together the three brand names when it is approved. The approval could have a hang up considering the previous merger between Staples and Office Depot in 1996 was not accepted, even though the OfficeMax and Office Depot deal was approved more recently.

The merger is slated to close near the end of this year, which will increase the size of its board from 11 to 13, with two Office Depot directors being added. There is also an added provision which will allow Staples to step away from the acquisition if the amounts are more than $1.25 million or if there were adverse effects on Office Depot’s international operations.

When the deal goes through and there is not a sell off of retail outlets or substantial asserts, then the merger will result in Staples functioning with around 4,400 stores and sales at about $34 billion.