Bristol Myers to acquire Mirati Therapeutics for $58 per share

Bristol Myers Squibb (BMY) and Mirati Therapeutics (MRTX) announced that they have entered into a definitive merger agreement under which Bristol Myers Squibb has agreed to acquire Mirati for $58.00 per share in cash, for a total equity value of $4.8B. Mirati stockholders will also receive one non-tradeable Contingent Value Right for each Mirati share held, potentially worth $12.00 per share in cash, representing an additional $1B of value opportunity. The transaction was unanimously approved by both the Bristol Myers Squibb and the Mirati Boards of Directors. Through this acquisition, Bristol Myers Squibb will add KRAZATI, a lung cancer medicine, to its commercial portfolio. The company gains access to other clinical assets that complement its oncology pipeline and are candidates for single agent development and combination strategies. The transaction is expected to be treated as a business combination and to be dilutive to Bristol Myers Squibb’s non-GAAP earnings per share by approximately 35c per share in the first 12 months after the transaction closes. The transaction is anticipated to close by the first half of 2024, subject to fulfillment of customary closing conditions, including approval of Mirati’s stockholders and receipt of required regulatory approvals. Bristol Myers Squibb expects to finance the acquisition with a combination of cash and debt.