Shares of Alleghany Corporation (NYSE: Y), a U.S. insurance company founded in 1929, rose 25% in Monday trading following news of an $11.6 billion deal with Berkshire Hathaway Corporation.

Warren Buffett’s holding company will pay $848.02 in cash per share, 29% above Alleghany’s average value over the past 30 days and 16% above its closing high over the past 52 weeks.

The transaction is expected to close in the fourth quarter of 2022; with Alleghany continuing to operate as an independent subsidiary of Berkshire Hathaway after the transaction closes.

“Berkshire will be the perfect home for Alleghany, a company I have closely followed for 60 years. For 85 years, the Kirby family has built a business that looks a lot like Berkshire Hathaway. I am especially excited about the opportunity to work together again with my longtime friend Joe Brandon,” Buffett said after the deal was announced.

Alleghany has the right to actively solicit and consider other acquisition proposals within a 25-day period. However, Keefe, Bruyette & Woods analyst Meyer Shields said the company’s complexity makes “other offers unlikely.”

According to Investing PRO, the New York-based company’s valuation implies “strong free cash flow profitability.” Alleghany reported revenue of $3.6 billion in the fourth quarter ending December 2021, up from $2.7 billion in the same quarter of 2020, while its net income jumped to $516 million from $159 million and operating income was $735 million ($256 million at the end of 2020).