Amgen Inc.
AMGN,
has agreed to acquire Horizon Therapeutics Plc
HZNP,
in an all-cash deal valued at $27.8 billion, confirming earlier reports and a deal that was first mooted in November. Under the terms of the deal, Amgen will pay $116.50 per each Horizon share owned, equal to a 47.9% premium over the stock’s closing price on Nov. 29, the day before the deal was first announced. It’s equal to a premium of 19.7% over the stock’s closing price Friday at $97.29. The deal is expected to generate robust cash flow, with the companies drumming up about $10 billion in combined cash flow over the 12 months through the third quarter of 2022. It’s expected to boost non-GAAP per-share earnings from 2024 and to lead to pretax cost savings of at least $500 million by the third year after close. Amgen expects the regulatory approvals and other conditions under the Irish business code to be achieved by the first half of 2023. Horizon shares jumped 14% premarket on the news.
