QVC owner Liberty buying Zulily in about $2.3 billion deal

NEW YORK (AP) — The owner of QVC is buying online flash deal business Zulily in a cash-and-stock deal valued at approximately $2.32 billion.

While Zulily's sales topped $1 billion last year, its growth has slowed and its shares have been in decline since February of last year.

The per-share price paid by QVC is below the $22 Zulily got during its initial public offering in November 2013, and far lower than the $73.50 that company shares hit shortly after its IPO.

Liberty Interactive Corp. will pay $9.375 in cash and 0.3098 newly issued shares of QVCA for each Zulily share. The transaction is valued at $18.75 per share. That's a 49 percent premium to Zulily's Friday closing price of $12.57.

The companies put the transaction's value at $2.4 billion.

Shares of Zulily jumped 45 percent at the opening bell today to $18.22.