QVC owner Liberty Interactive buying Zulily in a cash-and-stock deal valued at about $2.3B

The owner of QVC is buying online flash deal business Zulily in a cash-and-stock deal valued at approximately $2.32 billion.

Liberty Interactive Corp. will pay $9.375 in cash and 0.3098 newly issued shares of QVCA for each Zulily share. The transaction is valued at $18.75 per share. That's a 49 percent premium to Zulily's Friday closing price of $12.57.

The companies put the transaction's value at $2.4 billion.

Zulily Inc. will keep its headquarters in Seattle, with Darrell Cavens remaining as its president and CEO.

Both companies' boards approved the deal, which is targeted to close in the fourth quarter.