Norwegian Cruise Line Tuesday announced plans to acquire Prestige Cruise International for $3 billion as it seeks to expand its offerings to the upscale shipboard vacation market.
Norwegian, which currently owns 13 ships operating in North America, the Baltics and other sites, said the deal will add Prestige's upscale and luxury cruise brands, known as Oceania and Regent, to its offerings.
Prestige's eight vessels are mostly smaller ships that take longer voyages of up to six months. The majority of Norwegian's cruises last seven days.
"The acquisition of Prestige represents an extraordinary opportunity for Norwegian Cruise Line to expand our market presence by adding two established, award-winning brands in the upscale cruise segment with loyal followings," said Norwegian chief executive Kevin Sheehan.
Norwegian said the deal would also enable it to trim costs through economies of scale and expand its geographic reach.
In mid-afternoon trade, Norwegian shares rose 11.8 percent to $37.22.