Nichi-Iko Pharmaceutical Co., Ltd and Sagent Pharmaceuticals, Inc. announced that they have entered into a definitive merger agreement under which Nichi-Iko will acquire Sagent via an all-cash tender offer followed by a second-step merger, for a total consideration of approximately $736 million.
The acquisition price represents a premium of approximately 40.3% to Sagent’’s closing price of $15.50 per share on July 8, 2016. The transaction, which has been unanimously approved by the Nichi-Iko and Sagent Boards of Directors, is expected to close in the second quarter of Nichi-Iko’s fiscal year ending March 2017, subject to customary regulatory approvals.
The transaction enhances Nichi-Iko’s platform in the U.S. market to commercialize its biosimilar product pipeline and increase its presence in injectables.
Sagent will benefit from Nichi-Iko’s portfolio of both biosimilars under development and injectable products. The deal will also give Sagent access to Nichi-Iko’s manufacturing infrastructure and quality control systems. No changes to Sagent’s current operations are currently anticipated and Nichi-Iko expects that Sagent’s current management team will continue to lead Sagent from its headquarters in Schaumburg, Ill.