Canada's Valeant Pharmaceuticals International Inc.
The deal for Salix, known for its irritable bowel syndrome drug Xifaxan, was approved by the boards of directors of both companies, the companies said in a news release.
The companies said the deal had an enterprise price value of $14.5 billion, which would include Salix's debt and any cash on hand. Valeant will pay $158.00 a share, putting the all-cash transaction value at about $10.1 billion.
The merger is expected to yield more than $500 million in annual cost savings from the cost base of the combined company, the release said.
The transaction is expected to close in the second quarter of 2015, and is subject to customary closing conditions and regulatory approval.
The deal is the largest ever for Laval, Quebec-based Valeant, which lost a take-over contest for Allergan Inc (AGN.N) last year. The usually acquisitive Valeant slowed its buying pace dramatically while it pursued Allergan, and Chief Executive Michael Pearson said last month that it would focus in 2015 on buying smaller, private companies.
British drugmaker Shire Plc
Endo International Plc (ENDP.O) had expressed interest but was rebuffed by Salix, according to a source.
CNBC first reported on Friday that Valeant was close to a deal with Salix.
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