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AbbVie to acquire Shire for $54.6 billion

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AbbVie announced it has reached an agreement to acquire Shire for $89.56 per share, or about $54.6 billion, according to a company press release.

The agreement consists of $41.71 in cash and 0.896 in new AbbVie shares, representing a 53% premium to Shire’s closing price on May 2.

AbbVie will gain the experimental drugs lifitegrast for dry eye and Premiplex (mecasermin rinfabate) for the prevention of retinopathy of prematurity as part of the acquisition.

Under the agreement, AbbVie will retain 30 senior Shire employees in an effort to promote the ongoing success of the newly combined entity.

This acquisition is estimated to increase earnings to above $1 per share by 2020, according to the press release. Additionally, the company estimates the acquisition will reduce its tax rate from 22% to about 13% by 2016.