Sun Pharmaceutical Industries Limited (NSE: SUNPHARMA) announced it will acquire Organon & Co. (NYSE: OGN) for $14.00 per share in cash, valuing the healthcare company at $11.75 billion in enterprise value.

The transaction has received approval from both companies' boards of directors and remains subject to regulatory approvals and Organon stockholder approval. The deal is expected to close in early 2027.

Organon, which spun off from Merck in 2021, operates as a global healthcare company focused on women's health and general medicines. The company markets more than 70 products across 140 countries and operates six manufacturing facilities across the European Union and emerging markets.

Sun Pharma plans to fund the acquisition through available cash resources and committed bank financing from Citigroup Global Markets Asia Ltd., JPMorgan Chase Bank, N.A., and MUFG Bank, Ltd.

For the year ended December 31, 2025, Organon reported revenue of $6.2 billion and adjusted EBITDA of $1.9 billion. The company had debt of $8.6 billion and cash of $574 million at year-end.

The combined entity would generate approximately $12.4 billion in revenue and operate in 150 countries with 18 markets each generating over $100 million in revenues, according to the companies' statement.

"This transaction represents a significant opportunity for Sun Pharma to build on its vision of Reaching People and Touching Lives," said Dilip Shanghvi, Executive Chairman of Sun Pharma.

J.P. Morgan Securities LLC and Jefferies LLC serve as financial advisors to Sun Pharma, while Morgan Stanley & Co. LLC leads financial advisory services for Organon alongside Goldman Sachs & Co. LLC.