Halozyme Therapeutics has made a move to acquire German drug maker Evotec in a deal valued at 2 billion euros, equating to approximately $2.11 billion. Halozyme has submitted a non-binding proposal to Evotec's management and supervisory board, proposing to purchase the company at a price of 11 euros per share in cash.
This offer represents a significant 109% premium over Evotec's closing share price on October 15, just before private equity firm Triton Partners acquired a roughly 10% stake in the company. Following the news, Evotec's stock listed in the US surged by 5.7% during premarket trading, in contrast to Halozyme, which saw a decline of 2%. Chief Executive Helen Torley expressed enthusiasm for the potential synergies between the two companies, stating, "I am excited about the potential to bring together best-in-class innovative technologies and both organizations' capabilities to create a pan US/European innovative services company." She emphasized that enhanced scale, a strong pipeline, and diversified offerings would position the combined entity as a highly attractive strategic partner in the biopharma sector. Halozyme anticipates that the merger will significantly broaden its scale and revenue streams, extending its adjusted earnings before interest, taxes, amortization, and depreciation well into the next decade.
The company reassured stakeholders that the potential transaction would not necessitate any financing contingency, citing substantial cash reserves and a robust balance sheet as factors in the proposal's viability. Furthermore, Halozyme expects the transaction to comply with regulations set by German financial watchdog BaFin regarding financing. In a follow-up statement, Evotec confirmed the receipt of Halozyme's acquisition proposal, announcing plans to thoroughly evaluate the offer and determine the subsequent steps forward..