Here’s everything investors need to know about the deal between the two companies.
- Jazz Pharma plans to acquire all outstanding GW Pharma American Depositary Shares (ADS) for $220 per share.
- Each ADS represents 12 shares of GWPH stock.
- This will have JAZZ paying a 50% premium over the stock’s closing price on Tuesday.
- The company is using a mix of cash and stock to complete this transaction.
- This will have it paying $200 in cash and $20 in JAZZ stock for each share of GWPH stock.
- The number of JAZZ shares used in the acquisition will be calculated based on the price of the stock over a 15-day period before the deal closes.
- In total, this will have it spending $7.2 billion to acquire GW Pharma, or $6.7 billion after accounting for GWPH’s cash.
- Jazz Pharma will be using a mix of cash on hand and debt to finance its acquisition of GW Pharma.
- The deal between the two companies has unanimous support from both’s Boards of Directors.
- GW Pharma and Jazz Pharma still need to complete customary closing conditions to complete the deal.
- That includes getting approval from holders of GWPH stock, as well as from regulators.
- So long as the two companies don’t run into any trouble with this, the deal will close in the second quarter of 2021.
GWPH stock was up 46.3% and JAZZ stock was down 5.5% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.