Valeant Pharmaceuticals International (NYSE:VRX) increases the company’s bid to takeover Salix Pharmaceuticals (NASDAQ:SLXP). Valeant is offering $10.96 billion in cash for the company. Salix has since agreed to the offer, which is dramatically higher at $173 per share than Valeant’s former bid of $158 per share.
If the acquisition goes through, it would be the largest purchase ever made by Valeant.
Valeant is known for their aggressive bids to purchase companies, which has been part of the company’s main growth in coming year. Concerns over increased debt for Valeant are valid. Salix had to reduce their earnings forecast last year due to higher drug supply levels.
Salix shares rose on the NASDAQ by 1.9 percent to $172.6 per share after the news broke.
Valeant offered the company $1 billion more in cash than in its previous offer. The company is basing the acquisition off of the 63.3 million Salix shares outstanding.
Valeant stocks have risen 2.16 percent on the news of the acquisition. The company expects the deal to be completed on April 1st. The current bid from Valeant will expire on April 7th.
Salix is best known for their innovative gastroenterology treatments and medications, such as Xifaxan, Relistor, Solesta and Fulyzaq.
