Forty Seven M&A News: FTSV Stock Soars 62% on $4.9B Gilead Deal

Advertisement

Forty Seven (NASDAQ:FTSV) is seeing FTSV stock soar higher on Monday following news of an acquisition deal with Gilead (NASDAQ:GILD).

Forty Seven M&A News: FTSV Stock Soars 62% on $4.9B Gilead Deal

Source: Eyesonmilan / Shutterstock.com

A Forty Seven M&A news release reveals that the company is being bought for a total of $4.9 billion. That sets a price of $95.50 for shares of GILD stock. This represents a 64.66% premium over the stock’s closing price of $58.00 on Friday.

Gilead notes that it will be paying cash to acquire all outstanding shares of FTSV stock. All shares not tendered during the first offer will be acquired via a second-step merger for the same price as the normal offer. There are no financing conditions in place for this deal.

Evan Seigerman, a Credit Suisse analyst, said the following about the deal while speaking with Reuters.

“The deal is in line with the strategy CEO Daniel O’Day had laid out earlier in the year, but I think he and his management need to do something more impactful.”

The Forty Seven M&A news release also points out that the deal has the unanimous support from both companies’ Boards of Directors. For the deal to be a success, GILD will have to be able to acquire a majority of FTSV shares via its offer.

According to the Forty Seven M&A news release, the two companies are expecting the deal to close during the second quarter of 2020. Of course, it still needs to complete customary closing conditions and get approval from regulators first.

FTSV stock was up 61.62% and GILD stock was up 6.62% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/03/forty-seven-ma-news-sneds-ftsv-stock-soaring/.

©2024 InvestorPlace Media, LLC