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Salix Pharmaceuticals, Santarus agree on merger terms

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The boards of directors of Salix Pharmaceuticals and Santarus have agreed to a merger agreement that calls for Salix to acquire all outstanding Santarus common stock for $32 per share, according to a news release.

The price — about 36% above Santarus’ closing price on Nov. 6 — values the company at $2.6 billion.

“We are extremely pleased with the Santarus acquisition, which is transformative for Salix both commercially and financially, fulfilling many of our strategic needs while providing immediate and significant accretion in 2014 and beyond,” Salix President and CEO Carolyn Logan said in the release.

The transaction is expected to solidify Salix’s lead position in the gastrointestinal market, including 22 marketed products with no overlap and more products in the pipeline, according to the release.

The merger also will increase revenue diversification for Salix, while providing the company with an expanded sales force.

The transaction should close in the first quarter of 2014, according to the release. Salix will finance the acquisition through a combination of $800 million cash on hand and $1.95 billion in committed financing from Jefferies Finance, which also has agreed to provide another $150 million in revolving credit.