Private equity firm Blackstone is set to acquire the pet care app Rover in an all-cash deal.

The deal is valued at $2.3 billion. The acquisition is expected to close in the first quarter of 2024.

The deal offers Rover shareholders $11 per share.

This represents a 61% premium over Rover's average share price in the past 90 trading days.

Rover shares surged about 28% upon the news of the acquisition.

Rover will cease to be a publicly-traded company after the deal's closure.

The agreement allows a 30-day period until Dec. 29 for Rover and its advisors to consider other acquisition offers.

Rover's board of directors has approved the acquisition and recommended it to shareholders.

Rover shares had been trading mostly under $7 throughout the year.

A strong third-quarter earnings report led to a significant boost in Rover's share value.