Atlanta - Cumulus Media, the nation's second-largest radio company behind Clear Channel, announced on Monday that it has agreed to a merger deal, through which it will be sold to an investor group led by company chairman, president and CEO Lew Dickey, and an affiliate of Merrill Lynch Global Private Equity, for about $1.3 billion.

Under the terms of the deal, Cumulus stockholders will receive $11.75 in cash for each share of Cumulus common stock, representing a premium of about 40% over the company's closing share price on Friday.

The offer has been approved by Cumulus shareholders, and is expected to close early next year.

"We strongly believe in this industry and in the long-term opportunities to grow the business," said Lew Dickey, who will continue to head the company following the buyout.

"I look forward to working closely with our talented team and our new partners to build upon our success."

Atlanta-based Cumulus owns or operates 344 radio stations in 67 U.S. markets.

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