It’s a $1.6 billion deal that gives Adidas a second global leader in shoes and apparel.
And it’s a deal that also marks a big shift for Nike.
After a five-year standoff, the German company agreed to buy the US sports apparel company for $1 trillion.
The deal is the largest of its kind ever signed by an American company, according to The Wall Street Journal.
It comes as Nike, the biggest American sports brand, is struggling with a growing global decline.
The brand has seen sales shrink more than 30% over the past five years, while profits have been cut by half.
And its stock is down more than 40% this year alone.
The Adidas deal is worth about $1,000 per Adidas stock.
The Nike deal, meanwhile, is worth roughly $2 billion.
That’s according to the Wall Street and research firm S&P Global Market Intelligence.
Adidas will have to raise its cash flow to meet its goal of $10 billion.
It’s also likely to add more employees in the future.
But for now, it’s only a matter of time before Nike gets its first global sports company.
It also comes as Adidas is in the midst of a massive restructuring.
The company is looking to cut costs and streamline its operations.
Adidas Chief Executive Richard Salvi said last month that the company would start to lay off some 2,000 people this year.
The move came after it reported a $10.6 million loss in the first quarter of the year.
Adidas also cut its headcount by almost 2,500 people.
It is still a $50 billion business.
Nike, meanwhile has seen a massive growth in its global apparel business.
Last year, it brought in $6.5 billion in apparel sales.
That number is expected to grow this year to $7.6 trillion, according the Journal.