Health and Healthcare
Medicis and Valeant, When Both Companies Rise on a Merger
Published:
Last Updated:
Medicis Pharmaceutical Corp. (NYSE: MRX) is seeing its shares surging on news that it will be acquired by Valeant Pharmaceuticals International Inc. (NYSE: VRX). What is interesting here is that Valeant is seeing its shares on the rise as well, when most acquiring companies see their shares drop when they make an acquisition.
The terms of the deal call for $44.00 per share of Medicis in an all cash transaction. This transaction values Medicis at roughly $2.6 billion, and it has been unanimously approved by the boards of directors of both companies.
Today’s merger is a 39% premium being paid for Medicis after its closing price of $31.56 on Friday. Medicis has traded in a 52-week trading range of $29.76 to $40.10. Medicis has been public nearly 20 years and this gets the stock near an all-time high.
The transaction is expected to close in the first half of 2013 and the companies claim that cost synergies should run at least $225 million per year within six months of closing.
Medicis shares are trading up almost 38% higher at $43.50 so far this morning.
JON C. OGG
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
