AbbVie to acquire Allergan in $63B deal

AbbVie Inc. announced Tuesday it will acquire Allergan plc for approximately $63 billion.

Allergan is a pharmaceutical company with its U.S. headquarters based in Madison.

“This is a transformational transaction for both companies and achieves unique and complementary strategic objectives,” Richard A. Gonzalez, chairman and CEO, AbbVie, said. “The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders. With our enhanced growth platform to fuel industry-leading growth, this strategy allows us to diversify AbbVie’s business while sustaining our focus on innovative science and the advancement of our industry-leading pipeline well into the future.”

Under terms of the deal, Allergan shareholders will receive approximately 0.87 AbbVie shares and $120.30 in cash for each Allergan share they own for a total consideration of $188.24 per share.

The combined company will consist of several franchises with leadership roles across immunology, hematologic oncology, medical aesthetics, neuroscience, women’s health, eye care and virology, AbbVie said.

“This acquisition creates compelling value for Allergan’s stakeholders, including our customers, patients and shareholders. With 2019 annual combined revenue of approximately $48 billion, scale in more than 175 countries, an industry-leading R&D pipeline and robust cash flows, our combined company will have the opportunity to make even bigger contributions to global health than either can alone,” Brent Saunders, chairman and CEO, Allergan, said. “Our fast-growing therapeutic areas, including our world class medical aesthetics, eye care, CNS and gastrointestinal businesses, will enhance AbbVie’s strong growth platform and create substantial value for shareholders of both companies.”

Once the deal is complete, AbbVie will continue to operate in Delaware as AbbVie Inc. and have its principal executive offices in North Chicago, Illinois, it said.

The company will continue to be led by Gonzalez as chairman and CEO. Two members of Allergan’s board, including Saunders, will join AbbVie’s board.