Private equity firm KKR & Co Inc said on Monday it will buy industrial machinery maker Circor International in a $1.6 billion deal.

KKR said it will pay $49 a share, sending the shares of Massachusetts-based Circor surging 49% to $47.20 in premarket trading.

The offer represents an equity value of nearly $1 billion, according to Reuters' calculations. Circor, which has about 3,100 employees, makes pump and valve systems for sectors including industrial, aerospace, defense, oil and gas.

The Wall Street Journal first reported the deal, citing people familiar with the matter.

Circor did not immediately respond to a Reuters' request for a comment.

In March last year, the company had flagged irregularities in financial statements and roped in an independent accounting firm, and had also engaged in preliminary discussions with interested parties regarding a potential sale.

The transaction is expected to close in the fourth quarter of 2023.

(Reporting by Nathan Gomes and Priyamvada C in Bengaluru; Editing by Savio D'Souza and Shinjini Ganguli)