Jack in the BoxIs buying a good idea? Del TacoIn a deal worth approximately $575 million,, which is the second largest Mexican fast food chain in America, was acquired by.

In cash, the burger restaurant chain will pay $12.51 for each share. Del Taco shares closed Friday closing at $7.53 each share. Jack in the Box intends to finance the acquisition with additional securitization note.

Darin Harris, Jack in the Box CEO said that this was a “natural combination” of two challenger brands. He also stated that there are outstanding growth possibilities. Together, Jack in the Box, Del Taco and Del Taco will reap the benefits of a stronger financial structure, which allows them to have greater access to digital and technological capabilities. This will allow for increased unit growth and investment.

Premarket trading saw Jack in the Box shares rise less than 1 percent. Jack in the Box shares have fallen by 9% in the past year. It now has a market capitalization of $1.82 trillion. Del Taco’s shares suffered more severe losses. They fell 16% during the year, which dragged its market value to $274 millions. Trades are halted.

Del Taco boasts 600 outlets in 16 US states. It is the largest Mexican fast-food restaurant chain. Yum Brands’ Taco Bell. After adjustments and earnings of $124.3 million, Taco Bell earned 11c per share in its third quarter.

It will include more than 2,800 locations in all 25 states. It is anticipated that the purchase will close within three months in 2022.

Jack in the Box expects the deal to increase earnings per share in the first fiscal year by the middle of the single digits, exempting transaction expenses. According to Jack in the Box, it expects that the deal will bring about $15 million of benefits by fiscal year 2023. These include supply chain savings, knowledge-sharing initiatives, and other benefits.