NILE Blue Nile, Inc.

Online jeweler Blue Nile Inc. has reached a deal to be bought by private-equity firms in a $500 million deal.

Bain Capital Private Equity and Bow Street LLC will pay $40.75 per share for Blue Nile, a 34% premium over the company's closing stock price on Friday.

In 2015, the Seattle company had total sales of $480.1 million. It was founded in 1999 and went public in 2004. Its shares have fallen 18% this year.

As consumers have gotten more comfortable with buying jewelry online, Blue Nile has faced increased competition both from traditional jewelers investing more in their online stores and from newer jewelry startups.

Blue Nile has until Dec. 6 to look for other suitors in a so-called go-shop period. Depending on the circumstance, Blue Nile could pay up to a $17.4 million termination fee and the buyers could pay Blue Nile up to $32.2 million.

The company also reported quarterly results. Revenue fell 4.4% to $105.1 million as earnings fell to $1.29 million, or 11 cents on a per-share basis, compared with $2 million, or 17 cents a share, a year prior.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

November 07, 2016 08:45 ET (13:45 GMT)

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