Nightstar Therapeutics stock was soaring on Monday following news that Biogen (NASDAQ:BIIB) is acquiring it.
Source: Biogen via YouTube
The deal will have Biogen spending a total of $877 million to acquire Nightstar Therapeutics (NASDAQ:NITE). This will have the company paying $25.50 in cash for each share of Nightstar Therapeutics stock.
The offer price of $25.50 per share for Nightstar Therapeutics stock represents a 70% premium to the stock’s 30 trading day volume-weighted average price. It is also a 68% premium over the stock’s closing price from Friday.
Biogen notes that all issued and to be issued shares of Nightstar Therapeutics stock will be acquired by Tungsten Bidco Limited. This is a newly-incorporated company and wholly-owned subsidiary of BIIB.
“I am proud of Nightstar’s achievements, delivering two proof-of-concept programs and building a world class organisation,” Chris Hollowood, Chairman of Nightstar Therapeutics, said in a statement. “We look forward to seeing the next chapter of Nightstar’s journey under Biogen’s ownership, as it works to achieve its ultimate ambition of delivering transformational treatments to patients.”
Biogen and Nightstar Therapeutics are expecting the acquisition deal to close during mid-2019. However, it will first have to get regulatory approval and complete other customary closing conditions. Among these is approval from holders of Nightstar Therapeutics stock for the deal. The acquisition does not need approval from shareholders of BIIB.
Nightstar Therapeutics is getting its financial advice for the deal from Centerview Partners and Jefferies LLC. The company’s legal advice concerning the matter is coming from Arps, Slate, Meagher & Flom LLP.
Nite stock was up 66% and BIIB stock was down 2% as of noon Monday.
More From InvestorPlace
- 2 Toxic Pot Stocks You Should Avoid
- 5 Retail Stocks Ready to Break Out
- 7 Strong Buy Stocks the Street Loves
- 10 Best Stocks to Buy and Hold Forever
As of this writing, William White did not hold a position in any of the aforementioned securities.
The post NITE, BIIB: Nightstar Therapeutics Stock Soars on Biogen Buy appeared first on InvestorPlace.