AbbVie To Acquire Allergan In $63B Deal

Drugmaker AbbVie Inc (NYSE:ABBV) has reached a deal to acquire Allergan (NYSE:AGN) for $63 billion.

Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share, for a total of $188.24 per Allergan share.

The acquisition will provide annual pre-tax synergies and other cost reductions of at least $2 billion in year three.

"AbbVie is expected to generate significant annual operating cash flow, which will support a debt reduction target of $15 to $18 billion before the end of 2021, while also enabling a continued commitment to Baa2/BBB or better credit rating and continued dividend growth," the companies said in a press release.

AbbVie shares traded down 8.22% at $72 in Tuesday's pre-market session. Allergan shares traded higher by 29.6% at $167.88.

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Photo courtesy of Allergan.