Builders FirstSource Inc., a Dallas-based maker of materials for new homes, rose the most on record after saying it agreed to buy competitor ProBuild Holdings LLC in a deal valued at $1.63 billion.

ProBuild, based in Denver, operates about 400 lumber and building product distribution, manufacturing and assembly centers serving 40 U.S. states, according to a statement Monday. The companies had 2014 combined revenue of $6.1 billion.

Builders FirstSource jumped 59 percent to $10.97 at 9:34 a.m. in New York. It was the biggest intraday gain ever for the shares, which began trading in June 2005.

The transaction will better allow the companies to capitalize on the recovery in the housing market and the potential for improved new-home starts, according to the statement. Construction of new houses in the U.S. remains below historical averages, Commerce Department figures show.

“As the U.S. housing market continues its recovery, we believe now is the ideal time to position Builders FirstSource for its next phase of growth and value creation,” Floyd Sherman, chief executive officer of Builders FirstSource, said in the statement. “Together we will establish a broader, more efficient platform of manufacturing and distribution capabilities.”

ProBuild, which sells materials including lumber and plywood, engineered wood and gypsum wallboard, was created in 2006 by Devonshire Investors, the private-equity firm affiliated with FMR LLC, the parent company of Fidelity Investments. It had about $4.5 billion in revenue in 2014, the companies said.

The purchase is expected to close in the second half. The combined company is likely to generate $100 million to $120 million in annual cost savings in the first two years after closing, according to the statement.