Retailer Saks Inc. agreed to be bought by Hudson's Bay Co. for $2.4 billion, in an all-cash deal that is probably as much about high-end real estate as luxury clothes.

Hudson's Bay agreed to pay $16 in cash per Saks share—a 4.5% premium to the retailer's $15.31 Friday closing price.

The acquisition of Saks caps a seven-year run of deal-making...