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Lattice Semiconductor Corp. (NASDAQ: LSCC) shares made a strong gain in Thursday’s session after the company announced that it has agreed to be acquired. Canyon Bridge Acquisition signed a definitive agreement with Lattice to acquire all outstanding shares for $1.3 billion, including Lattice’s net debt. Ultimately this shakes down to about $8.30 per share.

The transaction has been unanimously approved by both companies’ boards of directors and is expected to close in early 2017 subject to customary closing conditions, regulatory approvals and approval by Lattice’s shareholders.

Upon the completion of the transaction, Lattice will be a standalone subsidiary of Canyon Bridge and Lattice’s senior management team will continue to lead the business from its current headquarters.

Excluding Thursday’s move, Lattice has underperformed the broad markets, with the stock up about 1% year to date. Over the past 52 weeks, the stock is up nearly 36%.

Darin G. Billerbeck, president and CEO of Lattice, commented:

We are pleased to announce the transaction today with Canyon Bridge, which will unlock tremendous value for shareholders. This transaction is the culmination of an extensive review process with our Board, financial and legal advisers, and it delivers certain and immediate cash value to shareholders while reducing our execution risk. We are excited to leverage Canyon Bridge’s resources and market connections as we enhance our focus on executing our long-term strategic plan of continued innovation. Importantly, we will operate as a standalone subsidiary after the acquisition and do not expect any changes in our operations or our unwavering commitment to continued innovation for our customers.

Shares of Lattice were last seen up nearly 19% at $7.57, with a consensus analyst price target of $7.26 and a 52-week trading range of $4.02 to $7.74.