Alexion Pharma To Buy Synageva; Transaction Valued At $8.4 Bln Net Of Cash

(RTTNews) - Alexion Pharmaceuticals Inc. (ALXN) said Wednesday that it agreed to acquire Synageva BioPharma Corp. (GEVA) for consideration of $115 in cash and 0.6581 Alexion shares, for each share of Synageva, implying a total per share value of $230 based on the nine day volume-weighted average closing price of Alexion stock through May 5, 2015. The transaction is valued at about $8.4 billion net of Synageva's cash.

The transaction has been unanimously approved by both companies' Boards of Directors.

The transaction is expected to accelerate and diversify Alexion's growing revenues, and Alexion expects to achieve annual cost synergies starting this year and growing to at least $150 million in 2017. In addition, the transaction is expected to be accretive to non-GAAP earnings per share in 2018.

The transaction is expected to close mid-2015.

In connection with the Transaction, Synageva shareholders, including affiliates of Baker Brothers Investments, have entered into voting and support agreements with Alexion covering approximately 33.5% of Synageva's outstanding shares.

Alexion has received committed financing of $3.5 billion from Bank of America Merrill Lynch and J.P. Morgan in connection with the transaction.

Alexion Pharmaceuticals also announced that its Board has increased the size of the Company's share repurchase authorization to a total of $1 billion.