2023-07-28 07:18:20 ET
Biogen Inc. ( NASDAQ: BIIB ) agreed to buy Reata Pharmaceuticals ( NASDAQ: RETA ) for $172.50 per share in cash, or an enterprise value of about $7.3 billion. Reata shares were halted for news pending. Biogen fell 3.6% in premarket trading.
The acquisition is expected to close in Q4, according to a statement on Friday. Biongen ( BIIB ) is paying a premium of 58% to Reata's ( RETA ) closing price on Friday.
The acquisition is expected to be slightly dilutive to Biogen’s non-GAAP EPS in 2023, roughly neutral in 2024, and significantly accretive beginning in 2025.
Biogen ( BIIB ) expects to finance the acquisition with cash on hand, supplemented by the issuance of term debt. Biogen has entered into voting and support agreements with certain stockholders of Reata representing approximately 36% of the voting power of Reata’s common stock.
The news comes after Betaville reported on Thursday that Reata Pharma ( RETA ) was speculated to have attracted takeover interest, likely from two large industry players. Bloomberg earlier Friday reported the news of Biogen's interest.
Lazard acted as financial advisor to Biogen ( BIIB ) in the deal and Cravath, Swaine & Moore acted as its legal advisor. Goldman Sachs acted as financial advisor to Reata and Vinson & Elkins acted as its legal advisor.
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Biogen agrees to buy Reata Pharmaceuticals for $172.50 a share in cash