Merck To Acquire Cubist Pharma For $102 Per Share - Quick Facts

(RTTNews) - Merck (MRK), and Cubist Pharmaceuticals, Inc. (CBST) announced they have entered into a definitive agreement under which Merck will acquire Cubist for $102 per share in cash. The transaction has an equity valuation of $8.4 billion and will also include $1.1 billion in net debt and other considerations for a total transaction value of approximately $9.5 billion.

Merck expects the acquisition to add more than $1 billion of revenue to its 2015 base. While the transaction will be neutral to non-GAAP EPS in 2015, Merck expects it to be significantly accretive to non-GAAP EPS in 2016 and beyond.

Merck, through a subsidiary, will initiate a tender offer to acquire all outstanding shares of Cubist Pharmaceuticals, Inc. Upon the completion of the tender offer, Merck will acquire all remaining shares through a second-step merger without the need for a stockholder vote under Delaware law. The companies expect to close the deal in the first quarter of 2015.

Cubist Pharmaceuticals, Inc. is a global biopharmaceutical company focused on the research, development, and commercialization of pharmaceutical products that address significant unmet medical needs in the acute care environment. Cubist's corporate headquarters is based in Lexington, Massachusetts, with international headquarters located in Zurich, Switzerland.