AbbVie Agrees To Buy Pharmacyclics - Quick Facts

(RTTNews) - AbbVie (ABBV) announced that it has entered into definitive agreement to buy Pharmacyclics Inc.(PCYC), and its flagship asset Imbruvica® (ibrutinib), a highly effective treatment for hematologic malignancies. AbbVie said that Pharmacyclics transaction will be highly accretive to both revenue and earnings by 2017.The closing of the tender offer is expected to close in mid-2015

Under terms, AbbVie will pay $261.25 per share comprised of a mix of cash and AbbVie equity. The transaction values Pharmacyclics at approximately $21 billion and was approved by the Boards of Directors of both companies.

In the tender offer, Pharmacyclics' stockholders will be permitted to elect cash, AbbVie common stock or a combination, subject to proration. The aggregate consideration will consist of approximately 58% cash and 42% AbbVie common stock.

AbbVie said it will acquire all remaining shares of Pharmacyclics' common stock that are not tendered in the tender offer through a second-step merger, which will be completed immediately following the tender offer and without a vote of Pharmacyclics' stockholders.

The acquisition accelerates AbbVie's clinical and commercial presence in oncology, strengthening its already robust pipeline, and establishing its strong leadership position in hematological oncology.

AbbVie expects to fund the transaction through a combination of existing cash, new debt and stock.