Arctic Cat Inc (NASDAQ:ACAT) stock was skyrocketing on Wednesday following news that it will be acquired by Textron Inc. (NYSE:TXT).

The deal will have Textron Inc. acquiring Arctic Cat Inc for $247 million. This will be paid fully with cash. The offer translates to TXT paying $18.50 for all outstanding ACAT stock. This represents a roughly 41% premium over the stock’s closing price on Jan. 20, 2017.

The deal will have Arctic Cat Inc being acquired by one of Textron Inc.’s wholly owned subsidiaries. One the deal is complete, ACAT will join TXT’s Specialized Vehicles business. It will keep its current brand name. It will also still use its current manufacturing, distribution and operational facilities.

Arctic Cat Inc says that combining with Textron Inc. will include benefits for both companies. It notes that this will “allow for more aggressive investment in product development, dealer networks, marketing and customer service.”

Arctic Cat Inc’s Board of Directors has already unanimously approved the deal to be acquired by Textron Inc. It also says that it expects tender offer materials will be ready for shareholders by Feb. 7, 2017. The deal will need to complete customary conditions and get regulatory approval before it can close.

Arctic Cat Inc is receiving financial advice from Baird and legal advice from Fredrikson & Byron. Textron Inc. is getting its legal advice from Shearman & Sterling LLP.

The acquisition offer from Textron Inc. may be just what Arctic Cat Inc needs. The company has been struggling lately with declining sales. Its revenue has missed estimates in the last fourth quarters and earnings per share for those periods were below expectations.

ACAT stock was up 41% and TXT stock was down 9% as of Wednesday morning.