Zogenix (NASDAQ:ZGNX) stock is skyrocketing on Wednesday following news that UCB (OTCMKTS:UCBJY) intends to acquire the company in a $1.9 billion deal.
The deal between the two companies will have UCB using a tender offer to acquire all outstanding shares of ZGNX stock. The offer has it paying $26 per share and also includes a contingent value right for a potential cash payment of $2 per share. This requires the E.U. to approve Zogenix’s FINTEPLA before 2023 comes to a close.
It’s worth pointing out that the offer made by UCB represents a 72% premium to the 30-day volume-weighted average closing price of ZGNX stock. Also, the Boards of Directors at both companies have given the deal their unanimous support.
Stephen J. Farr, PhD, President and CEO of Zogenix, said the following about the deal sending ZGNX stock higher today.
“We are delighted to announce UCB’s proposed acquisition of Zogenix, recognizing the value of our lead medicine, both for the important role it has already begun to play for Dravet patients and their caregivers, and for its potential to help many others in the future.”
UCB is using a mix of cash on hand and new resources to fund its deal for Zogenix. So long as there are no regulatory issues, the two companies are expecting the deal to close in the second quarter of 2022.
Today’s deal has ZGNX stock seeing heavy trading. That has some 17 million shares on the move as of this writing. For comparison, the company’s daily average trading volume is about 640,000 shares.
ZGNX stock is up 67.2% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
