Royal Caribbean Cruises Ltd. announced Thursday the agreement to acquire a 67% stake in privately-owned Silversea Cruises for about $1 billion. This agreement brings them to top tier position in the cruise industry.

“Silversea is a crown jewel, and the acknowledged leader in luxury and expedition cruising, two key markets that are poised for growth,” said Richard Fain, Chairman and CEO of Royal Caribbean Cruises Ltd. “Uniting our two companies presents an extraordinary opportunity to expand vacation options for guests and create revenue in strategic growth areas.”

Under the agreement, RCL plans to finance the purchase through debt. In addition, Silversea will qualify for an estimated contingent consideration of approximately 472,000 RCL shares, payable upon achievement of certain 2019-2020 performance metrics.

Silversea Chairman Manfredi Lefebvre d’Ovidio, explained why he found the deal appealing.

Lefebvre said in his statement that the new partnership gives Silversea the opportunity to accelerate the growth of the most successful luxury and expedition cruising brand in the world.

“I was not thinking about partnering with anybody, but I did realize that myself and Richard shared a vision about the future of luxury,” he said. “This partnership will bolster the growth of this exceptional brand founded by my father.”

Fain added that Lefebvre will remain Executive Chairman of Silversea, continuing to lead its strategy long term.

Lefebvre and Fain also confirmed that Silversea’s CEO Roberto Martinoli will continue his role, working with the existing Silversea management team.

The closing is expected to be completed later in the year, subject to customary closing conditions and regulatory approvals.