Facebook Inc. shares gained as much as 2.2% on Thursday as investors cheered a $6.1 billion financing deal that closed Wednesday.
Facebook also closed an additional $1.2 million in debt.
Instagram, which had posted revenue of $1 billion in the second quarter, said in a regulatory filing Wednesday that it was completing a sale of its common stock to an investor group led by Sequoia Capital, a private equity firm.
Instagram shares have risen more than 9% since the deal was announced.
Facebook said in its filing that the deal, which will create a company that operates as an independent company, was “expected to close in the third quarter of 2019.”
Facebook said that the sale, which was due to close next year, would be completed by September 2018.
The company’s stock rose as much in after hours trading on Wall Street as it did on Thursday.
The deal is a major achievement for Facebook, which has been trying to buy Instagram for years, and a rare example of a company acquiring a major social networking company for cash.
The purchase is likely to add to Facebook’s debt load as it tries to balance its cash position.
It will give Facebook more liquidity to pay for its debt, as well as for acquisitions that could boost its profitability.
Facebook has been under pressure to sell the company, as investors have grown increasingly frustrated with the social network’s inability to turn a profit and to get users to use its services.
Facebook’s stock fell about 1% Thursday.