Senomyx Inc. (NASDAQ: SNMX) rose Monday morning after Firmenich announced plans to acquire Senomyx for $1.50 per share in cash.
The San Diego-based Senomyx issued a news release Monday, stating that the purchase price represents a premium of approximately 43% over Senomyx's closing price on September 14 and a premium of approximately 39% based on the prior 30-trading day volume-weighted average price.
The proposed transaction has been unanimously approved by the Boards of Directors of both Firmenich and Senomyx. The companies expect to close the transaction in the fourth quarter of 2018.
"Senomyx has established itself as a leader in taste innovation and a recognized pioneer in sweet, cooling and bitter solutions," said Patrick Firmenich, the Swiss-based firm’s board chairman.
"Building on our long-term partnership spanning more than a decade, we look forward to welcoming Senomyx into Firmenich to lead in taste and nutrition."
Said Senomyx CEO John Poyhonen, "We are excited to be joining Firmenich. Firmenich's commitment to innovation and delivery of world-class commercialization capabilities combined with our long standing relationship makes this deal the ideal fit for our companies."
Upon closing, Senomyx will be integrated into Firmenich's North America Research & Development (R&D) organization and its products will be commercialized through its Taste Platform.
Senomyx R&D operations will remain in San Diego, with a continued focus on discovering and developing world-class flavor and sweetener solutions for the world's greatest brands.
Senomyx shares raced higher 44 cents, or 41.9%, to $1.49 soon after Monday’s opening bell.
