Deal is done, Actelion agrees to be acquired by J&J

After several weeks of on/off discussions, US health care giant Johnson & Johnson (NYSE: JNJ) has reached agreement to acquire Swiss biotech Actelion (SIX: ATLN) in a $30 billion deal which includes the spin out of a new R&D company.

J&J will launch an all-cash tender offer in Switzerland to acquire all of the outstanding shares of Actelion for $280 per share, payable in U.S. dollars, which equates to 280.08 Swiss francs per share as of January 25, 2017. The transaction, which was unanimously approved by the boards of directors of both companies, is expected to be immediately accretive to J&J adjusted earnings per share and accelerate the US firm’s revenue and earnings growth rates. Johnson & Johnson will fund the transaction with cash held outside the USA. It is expected to close by the end of the second quarter of 2017.

Actelion has established a leading franchise of differentiated, innovative products for pulmonary arterial hypertension (PAH) that is highly complementary to the existing portfolio of the Janssen pharmaceutical companies of J&J. The addition of Actelion's specialty in-market medicines and late-stage products is consistent with J&J’s efforts to grow in attractive and complementary therapeutic areas and serve patients with serious illnesses and significant unmet medical need, the US firm said. In addition, the transaction structure will provide Johnson & Johnson flexibility to accelerate investment in its industry-leading, innovative pipeline to drive additional growth. Further, Johnson & Johnson expects to retain Actelion's presence in Switzerland and also leverage its complementary capabilities in shaping medical paradigms.