AbbVie Inc. and Allergan plc announced that the companies have entered into a definitive transaction agreement under which AbbVie will acquire Allergan in a cash and stock transaction for a transaction equity value of approximately $63 billion, based on the closing price of AbbVie's common stock of $78.45 on June 24, 2019.
According to the companies, the combined company will consist of several franchises with leadership positions across immunology, hematologic oncology, medical aesthetics, neuroscience, women's health, eye care, and virology. Allergan's product portfolio will be enhanced by AbbVie's commercial strength, expertise, and international infrastructure, the companies said.
Under the terms of the Transaction Agreement, Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share that they hold, for a total consideration of $188.24 per Allergan share.
Upon completion of the transaction, AbbVie will continue to be incorporated in Delaware as AbbVie Inc. and to have its principal executive offices in North Chicago, IL. AbbVie will continue to be led by Richard A. Gonzalez as chairman and CEO. Two members of Allergan's Board, including Chairman and CEO Brent Saunders, will join AbbVie's Board upon completion of the transaction.
The companies anticipate that the transaction will close in early 2020 and is dependent on certain regulatory and shareholder approvals.