NEW YORK (AP) — Canadian energy and services company Emera says it will buy Teco Energy, an electric and gas utility that does business in Florida and New Mexico, for about $6.48 billion.

Emera says it will pay $27.55 per share of Teco Energy, a premium of about 31 percent over Friday's closing stock price. The companies valued the deal at $10.4 billion including debt. Shares of Teco Energy Inc. climbed 27 percent to $26.75 in aftermarket trading.

Emera says it has investments through the Northeastern U.S. and Canada as well as the Caribbean. It had almost $3 billion in revenue in 2014.

The companies expect to complete the sale by mid-2016. They said Emera will continue Teco's efforts to sell its coal business and plans to complete that sale by the time its acquisition of Teco closes.