Standard Pacific Corp. and Ryland Group Inc. have agreed to merge in an all-stock transaction that will create a single homebuilder with operations in 17 states.

The merger marks the first big move toward consolidation among the major publicly traded homebuilders in years and comes as the U.S. housing market continues to gradually regain its footing after years in a deep slump.

The two California-based homebuilders said late Sunday that their boards of directors unanimously agreed to go forward with "a merger of equals" that would form a company with an equity market capitalization of about $5.2 billion.

Ryland was the fifth-ranked U.S. homebuilder last year, based on home closings, while Standard Pacific was 11th, according to Builder magazine. Together, the builders accounted for 12,633 home closings last year, which would make the combined company the fourth-biggest builder. The top three are D.R. Horton, Lennar Corp. and PulteGroup.

Executives at Standard Pacific and Ryland said the merger will create a company that can sell homes potentially to a broader array of buyers. The new company would also own or control roughly 74,000 land parcels for homes. Read the Story in the New York Times.