Actavis and Allergan Inc. announced in a press release that they have entered into a definitive agreement under which Actavis will acquire Allergan for a combination of $129.22 in cash and 0.3683 Actavis shares for each share of Allergan common stock. Based on the closing price of Actavis shares on November 14, 2014, the transaction is valued at approximately $66 billion, or $219 per Allergan share.
The combination will create one of the top 10 global pharmaceutical companies by sales revenue, with combined annual pro forma revenues of more than $23 billion anticipated in 2015, the release said. The transaction has been approved by the Boards of Directors of Actavis and Allergan, and is supported by the management teams of both companies.
The deal is reportedly worth about $12B more than Valeant's takeover bid attempt.