Fashion retailer Nordstrom (JWN) is going private as part of a $6.25 billion acquisition deal between members of the Nordstrom family and Mexican retailer El Puerto de Liverpool (ELPQF, PLV1.F).

The deal could be a good sign for Nordstrom from a buyer’s perspective, as the giant retail chain is still “undervalued” at this price, David Swartz, senior equity analyst at Morningstar, tells Yahoo Finance.

Swartz joins Market Domination hosts Josh Lipton and Seana Smith to learn more about the Nordstrom acquisition.

“I think it’s a very good deal for the buyout group,” Swartz explains. “I also understand that there’s a reason why Nordstrom should probably go private, and that’s because investors just aren’t giving the department store companies good valuations right now.”

The analyst goes on to say that Nordstrom opening more Nordstrom Rack locations “is likely the future of the company.” Even though Rack is smaller than core Nordstrom stores, Rack is likely better positioned for this type of retail market we have today.”

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This post was written by Josh Lynch