Celsius Holdings (CELH) shares spiked early Friday as the company agreed to acquire energy drink maker Alani Nutrition in a cash-and-stock deal worth about $1.8 billion to expand its category portfolio and reach.

The company, which owns the Celsius energy drink brand, will purchase Alani Nutrition from its co-founders Katy Schneider and Haydn Schneider and its operator, Congo Brands, for $1.8 billion, it said late Thursday. The transaction includes about $150 million in tax assets, resulting in a net purchase price of $1.65 billion, according to Celsius.

The deal consists of $1.28 billion in cash, including $900 million in debt financing, a potential $25 million earn-out based on performance this year and $500 million of newly issued restricted shares of Celsius, representing a roughly 8.7% pro-forma ownership, the company said. The transaction, which requires approval from regulators, is expected to complete in the second quarter.

Shares of Celsius jumped 31% in the most recent premarket activity.

"Celsius is at a defining moment in the better-for-you, functional lifestyle products movement, and we are thrilled to welcome Alani Nu to the Celsius family," Celsius Chief Executive John Fieldly said in a statement. "Together, we expect to broaden the availability of Alani Nu's functional products to help more people achieve their wellness goals."

Celsius forecasts the acquisition to boost its position in the global energy category and drive about $2 billion in sales across its combined portfolio. The company estimates the deal to be accretive to cash earnings in the first full year of ownership on a per-share basis and generate $50 million of cost synergies over two years after completion.

"We believe Celsius can unlock key growth opportunities for Alani Nu," Congo Brands co-CEO Max Clemons said in the statement. The company will operate within Celsius after its acquisition, while important members of Congo Brands' leadership team will continue to serve as advisers.

In a separate statement, Celsius reported fourth-quarter adjusted earnings of $0.14 a share, down from $0.17 the year before, but ahead of the FactSet-polled consensus of $0.12. Revenue declined 4% year over year to $332.2 million, but topped the Street's view for $326.2 million.