Gannett Media, the newspaper giant publisher of USA Today, announced in a statement late Wednesday that it was going to acquire Journal Media Group for $280 million.

As reported by the Daily Mail, a Wisconsin-based Journal Media Group paper, The Milwaukee, owns about 17 small and medium-sized newspapers in nine American states, including Milwaukee Journal-Sentinel and the Commercial Appeal. In addition, it also owns 18 weekly publications.

Gannett Chief Executive Robert Dickey said of the deal, "Gannett is excited to be joining forces with an organization that is so respected by their communities and industry."

He further added, "Just over 100 days ago we laid out the importance of expanding our local market footprint, and we are very pleased that our acquisition strategy has kicked off with such a highly regarded company."

"This transaction will allow us to focus on creating quality journalism for our communities while building substantial value for our shareholders," he said. "We welcome the employees of the Journal Media Group into the Gannett family and look forward to continuing to be an industry leader," Dickey said.

The deal between Gannett Media and Journal Media Group was approved by board of directors of both companies; however, they are still waiting for final approval from the shareholders of the Journal Media Group.

As noted by the Economic Times, shareholders of the company will receive $12 per share in cash, which is a 44.6 percent premium over its Wednesday closing price of $8.30, Gannett said.

According to reports, the McLean, Virginia-based company will finance the deal through cash and by borrowing under its $500 million revolving line of credit.

This purchase will result into a $450 million annual revenue increase and daily circulation increasing by 675,000, the company said.

In a report by USA Today, Gannett who currently owns media businesses in 92 local markets will now increase to 106 local markets in the United States. As a result, the company will now have a combined digital audience of more than 100 million unique visitors a month.

The deal is expected to close in the first quarter of 2016.