Notable Mergers and Acquisitions of the Day 12/10: VRX, YHOO, GNW
- Valeant Pharmaceuticals International (NYSE: VRX) today announced that it has signed a definitive agreement to acquire Dow Pharmaceutical Sciences, Inc. for $285 million.
Current annualized revenues are approximately $45 million, of which approximately $20 million represents royalty payments from products already out-licensed by Dow. Approximately $8 million in cash will be retained from current Dow accounts, making the net amount paid $277 million. Valeant will make the first payment of $250 million upon closing ($242 million net of cash). In the six month period following closing, Valeant will fund an escrow account of $35 million, which will be subject to indemnification claims from Valeant for a period of eighteen months following closing. The transaction is expected to be accretive in 2009. Additionally, Valeant will pay future milestones, based predominately on the achievement of approval and commercial targets for certain pipeline products still in development.
- According to CNBC, a major Yahoo! (Nasdaq: YHOO) shareholder, Ivory Investment Management has sent a letter to the Yahoo! board saying that the company could receive up to $15 billion if they do a search deal with Microsoft (Nasdaq: MSFT). CNBC speculates that the letter could be released to the public within the next 15 minutes.
- Genworth Financial (NYSE: GNW) reached a definitive agreement with respect to the acquisition of InterBank, fsb of Maple Grove, Minnesota.
The completion of the proposed acquisition is subject to the approval of the Office of Thrift Supervision, Genworth receiving approval to participate in the U.S. Treasury Department's Capital Purchase Program under the Troubled Asset Relief Program, as well as the satisfaction of other customary closing conditions.
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