Yes, the two black holes will coalesce as described into a single black hole with surface area greater than the sum of the surface areas of the two individual black holes. Generally, the entire process can be broken down into three distinct regimes:
1) Plunge. The black holes are relatively far away from each other and are approximately kerr-schild (i.e there is not much tidal deformation due to the curvature of the other hole). Much of this stage can actually be computed with post-Newtonian approximations to general relativity, provided the holes are not too close together.
2) Merger. The black holes get close and are extremely distorted as they come together and the event horizons of each black hole reach out and touch with each other (when you can say they have truly merged). Things are very complicated during this stage, and numerical modeling is the only way to get any results.
3) Ringdown. Once a single event horizon has emerged, it will oscillate from its strange distorted shape down to a kerr-schild horizon that one would expect. This part is rather like the ringing of a bell which slowly damps away its oscillations to become a static solution. This part is (relatively) easy, as these oscillations modes can actually be computed analytically with approximations to general relativity.
I can answer (hopefully!) any questions you have about any of the three regimes or anything in general about merging black holes, as it is a line of research I am currently involved in.