Roche and Genentech (DNA) Agree To $95/Share Merger
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Roche and Genentech (NYSE: DNA) signed a merger agreement under which Roche will acquire the outstanding publicly held interest in Genentech for $95.00 per share in cash.
The two sides have fought for months on terms of the deal, which were originally $89 per share that later dropped to $86.50 then raised to $93 and is now at $95.
The combined company will be the seventh largest U.S. pharmaceuticals company in terms of market share. It will generate approximately US$17 billion in annual revenues and will employ around 17,500 employees in the U.S. pharmaceuticals business alone, including a combined sales force of approximately 3,000 people.
Roche expects the combination to generate annual pre-tax cost synergies of approximately US$750 to $850 million. Synergies will be largely driven by reducing complexity and eliminating duplicative functions and processes in areas like late stage development, manufacturing, corporate administration and support functions.
The transaction is expected to be accretive to Roche's earnings per share in the first year after closing.
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