Advanz Pharma to acquire Correvio

Advanz Pharma (TSX: ADVZ) has reached agreement to acquire all of the issued and outstanding shares of fellow Canada-based Correvio Pharma (TSX: CORV), sending the latter’s shares up 12.22% to $0.35 by mid-morning trading, while Advanz was down 1.9%.

The acquisition, which will be executed through Advanz’s wholly-owned subsidiary Mercury Pharma Group, is expected to have a total purchase price of around $76 million, which includes the repayment of certain Correvio indebtedness, pursuant to a plan of arrangement under the Canada Business Corporations Act.

The company will be paying (US) $0.42 per issued and outstanding share, approximately $28 million on a fully diluted basis. Inclusive of the repayment of Correvio's outstanding debt of about $48 million, this represents a total consideration of some $76 million, excluding Correvio's cash assumed by Advanz.