Iconix Brand Group Inc., an owner, licenser and marketer of consumer brands including Candie's and Bongo, on Tuesday (March 6) said it agreed to buy Rocawear brand for $204 million in cash.

The purchase price also includes contingent payments of an additional $35 million of Iconix stock based on the brand suprassing some performance thresholds over the next three to five years.

Jay-Z, Rocawear co-founder, retains his stake in the company and will be in charge of all product development, marketing and licensing for Rocawear. Jay-Z's senior management team in licensing, marketing and product development will also join Iconix.

Iconix predicts Rocawear will generate about $43 million in royalty revenue from its first year as part of Iconix.

Iconix will enter into a separate joint venture with Shawn Carter, which is Jay-Z's real name, to identify brands to be acquired or developed. The first brand will be a luxury brand called the Shawn Carter Collection, out in 2008.

Shares rose $1, or 4.7 percent, to $22.15 during premarket electronic trading. The stock has traded between $12.23 and $23.13 during the past 52 weeks.