Fishing and hunting equipment chain Cabela's Inc. said it agreed to be bought by rival Bass Pro Shops in a deal valued at $5.5 billion that will help the privately held company nearly double its store count in North America.

The offer of $65.50 per share is a 19.2 percent premium to Cabela's Friday close.

Shares of Cabela's jumped nearly 15 percent to $62.88 in premarket trading and were set to open at their highest in more than two years.

Cabela's has struggled with declining sales of apparel and footwear and has reported same-store sales growth in only one quarter in more than three years.

The retailer had been under pressure from activist hedge fund Elliott Associates L.P, which disclosed an 11.1 percent stake in October last year, to pursue strategic alternatives.

Reuters reported on Sunday that a consortium of Bass Pro Shops, Goldman Sachs Group Inc's private equity arm and Capital One Financial Corp was in the lead to buy the company.

In connection with the deal, Cabela's agreed to sell its credit card operations to Capital One Financial Corp.

Bass Pro Shops will finance the deal through preferred equity financing commitments of $2.4 billion from Goldman Sachs and Pamplona Capital Management.

J.P. Morgan Chase & Co. advised Bass Pro Shops and Guggenheim Securities advised Cabela's.