Pfizer To Buy Medivation For Total Enterprise Value Of About $14 Bln

(RTTNews) - Pfizer Inc. (PFE) said Monday that it agreed to acquire Medivation Inc. (MDVN), a biopharmaceutical company focused on developing and commercializing small molecules for oncology, for $81.50 a share in cash for a total enterprise value of about $14 billion.

In the pre-market trade, MDVN is currently trading at $80.10, up $12.94 or 19.27 percent.

The Boards of Directors of both companies have unanimously approved the merger, which is expected to be immediately accretive to Pfizer's Adjusted earnings per share upon closing, approximately $0.05 accretive in the first full year after close with additional accretion and growth anticipated thereafter.

Pfizer does not expect the transaction to impact its current 2016 financial guidance. It expects to finance the transaction with existing cash.

"The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer," said Ian Read, Chairman and Chief Executive Officer, Pfizer.

As per the terms of the merger agreement, a subsidiary of Pfizer will commence a cash tender offer to purchase all of the outstanding shares of Medivation common stock for $81.50 per share, net to the seller in cash, without interest, subject to any required withholding of taxes.

The closing of the tender offer is subject to customary closing conditions, including U.S. antitrust clearance and the tender of a majority of the outstanding shares of Medivation common stock.

The merger agreement contemplates that Pfizer will acquire any shares of Medivation that are not tendered into the offer through a second-step merger, which will be completed promptly following the closing of the tender offer. Pfizer expects to complete the acquisition in the Third- or Fourth-Quarter 2016.