Under the agreement, the newspaper and TV station owner will buy Belo, based in Dallas, for $13.75 per share. That represents a 28 percent premium over Belo's Wednesday closing price.
Gannett also will assume $715 million in debt.
The acquisition will make Gannett, based in McLean, Va., one of the country's largest owners of major network affiliates. It nearly doubles Gannett's portfolio from 23 to 43 stations.
Gannett expects the deal to boost its adjusted earnings by 50 cents per share within the first 12 months.
The deal is expected to close by the end of 2013.
In premarket trading, Belo Corp.'s shares jumped 26 percent. Gannett Co.'s stock rose 12 percent.
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