UPDATED: Staples and Office Depot Intend to Extend Merger Agreement

FRAMINGHAM - Staples, Inc. and Office Depot, Inc.announced the Board of Directors of both companies intend to waive the merger agreement termination date of February 4, 2016, and extend it to May 16, 2016.

The extension allows for the completion of ongoing federal district court litigation with the Federal Trade Commission. The companies are working to extend financing terms for the transaction, and expect to execute the merger extension agreement once financing terms are finalized.

“This merger creates an unparalleled opportunity to better serve our customers and to deliver shareholder value,” said Ron Sargent, Chief Executive Officer of Staples, in a statement. “We are committed to completing this transaction and look forward to a full and impartial judicial review.”

Late last year, the Federal Trade Commission said the merger should not take place. Both companies are challenging that decision.

On February 4, 2015, Staples and Office Depot entered into a definitive merger agreement to combine as a single company. The combined company will be better positioned to provide value to customers, and compete against a large and diverse set of competitors.

The company expects to deliver more than $1 billion of annualized synergies net of investments to provide increased value to customers by the third full fiscal year post-closing. The combined company will be better equipped to optimize its retail footprint, minimize redundancy, and reduce costs.

Staples has its world-wide headquarters in Framingham.