Spark Therapeutics, Inc. (NASDAQ: ONCE) shares rose sharply after Roche Holdings AG announced plans to acquire the company for $114.50 per share in cash.
The Philadelphia-based Spark says this corresponds to a total equity value of approximately $4.8 billion on a fully diluted basis, inclusive of approximately $500 million of projected net cash expected at close.
The per share price represents a premium of 122% to Spark’s closing price last Friday. The merger agreement has been unanimously approved by the boards of both Spark and Roche.
Under the terms of the merger agreement, Roche will promptly commence a tender offer to acquire all outstanding shares of Spark’s common stock, and Spark will file a recommendation statement containing the unanimous recommendation of the Spark board that Spark shareholders tender their shares to Roche.
The closing of the tender offer will be subject to a majority of Spark Therapeutics’ outstanding shares being tendered.
Said CEO Jeffrey Marrazzo, "As the only biotechnology company that has successfully commercialized a gene therapy for a genetic disease in the U.S., we have built unmatched competencies in the discovery, development and delivery of genetic medicines. But the needs of patients and families living with genetic diseases are immediate and vast."
Spark Therapeutics will continue its operations in Philadelphia as an independent company within the Roche Group.
Spark shares leaped $62.20, or 120.6%, to $113.76
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