Lennar Corp. will buy CalAtlantic Group Inc. in a $5.7 billion deal, that will create the country’s largest home builder by revenue, the companies said Monday.

Under the terms of the agreement, each CalAtlantic US:CAA share can be exchanged for 0.885 shares of Lennar LEN, +4.03% stock. That represents a 27% premium on CalAtlantic’s shares, based on Friday’s closing price.