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Ignyta Agrees To Be Bought By Roche In $1.7 Bln Cash Deal - Quick Facts

Ignyta, Inc. (RXDX) announced Friday that it has agreed to be acquired by Swiss drug major Roche Group (RHHBY) at a price of $ 27.00 per share in an all-cash transaction. This corresponds to a total transaction value of $ 1.7 billion on a fully diluted basis.

This price represents a premium of 74% to Ignyta's closing price on December 21 and a premium of 71% and 89% to Ignyta's 30-day and 90-day volume weighted average share price on the same day, respectively. The merger agreement has been unanimously approved by the boards of Ignyta and Roche.

Under the deal terms, Roche will promptly commence a tender offer, to acquire all outstanding shares of Ignyta common stock. Following completion of the tender offer, Roche will acquire all remaining shares at the same price of $27 per share through a second step merger.

The closing of the transaction is expected to take place in the first half of 2018.

California -based Ignyta is focused on precision medicine in oncology aiming to test, identify, and treat patients with cancers harbouring specific rare mutations.

Roche expects that Ignyta's investigational medicine entrectinib, a selective CNS-active tyrosine-kinase inhibitor being developed for tumours that harbor ROS1 or NTRK fusions, would expand Roche's portfolio of oncology medicines.

Citi is acting as financial advisor to Roche. BofA Merrill Lynch and J.P. Morgan Securities LLC are acting as financial advisors to Ignyta.

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