A slow-moving takeover battle that got hostile ended in a friendly manner on Monday as Human Genome Sciences (HGSI) agreed to be acquired by GlaxoSmithKline (GSK) for $3 billion in cash. The deal, worth $3.6 billion including debt, values HGSI at $14.25 per share, above Glaxo’s initial offer of $13 from three months ago. Human Genome had announced a deadline of today for competing bids.
Human Genome partnered with Glaxo in the lupus treatment benlysta, and the companies are also working on heart disease and diabetes treatments.
“The transaction is well aligned with GSK�s long-term strategy of delivering sustainable growth, simplifying GSK�s business model, enhancing R&D returns and deploying capital with discipline,” the companies said in a statement.
Because the deal had been anticipated, the stocks aren’t moving wildly this morning, although HGS is up 4.6%. Glaxo is trading 0.4% higher.
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