Parkway Properties Inc. and Thomas Properties Group Inc. announced today that they had signed a merger agreement. The deal was valued USD1.2 billion in a stock-for-stock transaction. The merger was unanimously approved by the board of each company. The deal had been expected to be finalized by fourth quarter of 2013.

Under the terms of the merger agreement, the shareholders of Thomas Properties would get 0.3822 newly issued Parkway shares of common stock. This was in exchange of Thomas Properties common stock valued USD6.26 based on the closing stock price of Parkway on September 4.

Parkway would assume Thomas Properties' ownership interest in two office properties located in Houston, Texas. Another five properties in Austin, Texas would also be assumed by Thomas Properties.

In addition, Parkway would take ownership over three assets in Northern Virginia that it had secured debt. It would also assume around USD752 million of the pro-rata share of in-pace secured debt of Thomas Properties.