TNB Thomas & Betts Corp.

Power technology group ABB (ABB) is buying electrical equipment producer Thomas & Betts Corp. (TNB) for $3.9 billion in cash, both companies announced Monday.

ABB said in a joint statement it will pay $72 a share for Thomas & Betts. This is a 24% premium to its last-traded price on Jan. 27 and a 35% premium to is 60-day weighted average.

The purchase will result in "annual synergies" of $200 million, ABB said in the statement.

ABB added it has arranged for $4 billion in financing from Bank of America Merrill Lynch. The deal is expected to be completed by mid-2012.