Endo to acquire Paladin Labs

Endo Health Solutions Inc. (NASDAQ:ENDP) is acquiring fellow specialty pharma Paladin Labs Inc. (TSX:PLB) in a cash and stock deal that the companies said values Paladin at C$77 per share, or about US$1.6 billion. Paladin shareholders will receive 1.6331 shares in the combined company, which is about 98% of the total purchase price, and C$1.16 in cash for each Paladin share held. The C$77 price is a 20% premium to Paladin's close of C$63.91 on Monday, before the deal was announced. The combined company will be incorporated in Ireland and led by Endo's management team. Endo shareholders will own 77.5% of the combined company, and Paladin shareholders will own the balance.

Endo shares rose on news of the deal, which is expected to be immediately accretive for Endo, gaining $12.58 (29%) to $56.22 on Tuesday. Paladin gained C$31.59 (49%) to C$95.50. ...