Ingram Micro Inc. and Tianjin Tianhai Investment Company, Ltd. have entered into a merger agreement.

Under the agreement, Tianjin Tianhai will acquire Ingram Micro for $38.90 per share in an all-cash transaction with an equity value of $6.0 billion.

Upon closing, Ingram Micro is due to become a part of HNA Group, a Global 500 enterprise group in aviation, tourism and logistics and the largest stockholder of Tianjin Tianhai. The transaction, which has been approved by both Ingram Micro’s and Tianjin Tianhai’s boards of directors, represents a premium of 39 percent over the average closing share price of Ingram Micro for the 30 trading days ended February 16, 2016.

Following the close of the transaction, which is expected in the second half of 2016, Ingram Micro is expected to operate as a subsidiary of Tianjin Tianhai. Ingram Micro is expected to remain headquartered in Irvine, California, and Ingram Micro’s executive management team is expected to remain in place. All Ingram Micro lines of business and all regional and country operations are expected to continue unaffected.

“Ingram Micro has clearly established itself as a leading distributor and global provider of IT products and services,” said Adam Tan, CEO of HNA Group. “The company has a proven and talented team and we believe Ingram Micro is unrivaled in its ability to offer industry-leading, differentiated and easy-to-manage solutions to vendor and customer partners worldwide. We look forward to supporting Ingram Micro’s management team and strategies, including continued expansion into new geographies, while also offering their vendor and customer partners access to new and complementary offerings.”

After the transaction, Ingram Micro will become the largest member enterprise of HNA Group in terms of revenue, and will facilitate the internationalization of the group, Tan noted. “With the help of Ingram Micro, HNA Group would have access to business opportunities in emerging markets, which have higher growth rates and better profitability,” he added. “The addition of Ingram Micro will help the logistics sector of HNA Group transform from a logistics operator to a supply chain operator, and provide one-stop services while improving efficiencies.”