Seattle.internet.com has learned that Kirkland-based Homegrocer.com will be merging with California-based Webvan.

Webvan will acquire HomeGrocer.com in a stock-for-stock transaction. The transaction is valued at approximately $1.2 billion, based on last Friday's closing price of $8.72 per share of Webvan stock.

The combined company will operate under the name Webvan Group, Inc.

Webvan and HomeGrocer currently operate in nine major metropolitan areas. As a result of the merger, Webvan expects to serve 13 metropolitan areas by the end of the year.