Sotheby's auction house announced Monday an agreement to be acquired by BidFair USA, a venture wholly owned by French media entrepreneur and art collector Patrick Drahi.

Sotheby's stakeholders will receive $57 per share in cash as a result of the transition, a premium of 61% to the company's stock price on Friday. The deal is valued at $3.7 billion.

The transaction, if approved by shareholders, would result in Sotheby's returning to private ownership after 31 years as a public company traded on the New York Stock Exchange.

The stock rallied more than 57% on Monday morning following the news.