Transcept, Paratek to merge, raise $93 million
Transcept Pharmaceuticals Inc. (NASDAQ:TSPT) will merge with infectious disease company Paratek Pharmaceuticals Inc. (Boston, Mass.) in a stock deal. Transcept will issue Paratek stockholders about 167.5 million Transcept shares, valued at $333.3 million based on Transcept's close of $1.99 on Monday, before the deal was announced. Paratek stockholders are expected to own about 89.6% of the combined company, which will retain the Paratek name, while Transcept stockholders will own 10.4%.
As part of the deal, new investors including The Baupost Group, Abingworth and other institutional investors; Transcept stockholders including InterWest Ventures and Rournell Asset Management; and Paratek stockholders including Omega Funds, HBM Healthcare Investments and Aisling Capital will invest about $93 million in the combined company. ...