Biopharmaceutical company AbbVie Inc. will acquire pharmaceutical giant Allergan Plc for roughly $63 billion in a cash-and-stock deal, the former announced in a press release on Tuesday.
Under the terms of the deal, Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each share held for a total consideration of $188.24 per share. The price represents a 45% premium on Allergan's closing share price of $129.57 on Monday. AbbVie will retain its current structure upon the transaction's completion while two members of Allergan's board will join the former's board upon completion. The transaction is expected to be concluded by early next year subject to shareholder approvals.
"This is a transformational transaction for both companies and achieves unique and complementary strategic objectives," said AbbVie CEO Richard A. Gonzalez. "The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders. With our enhanced growth platform to fuel industry-leading growth, this strategy allows us to diversify AbbVie's business while sustaining our focus on innovative science and the advancement of our industry-leading pipeline well into the future," he added.
Allergan's stock skyrocketed 29.27% in premarket trading at 7:06 am ET following the news while AbbVie's plummeted by 9.18% at the same time.
