Akcea Therapeutics Rallies After Majority Owner Ionis Agrees To Buy Remaining Stake

Akcea Therapeutics Inc AKCA shares were rallying strongly Monday following a buyout deal.

The Ionis, Akcea Deal Terms: Akcea and its majority owner Ionis Pharmaceuticals Inc IONS announced a definitive agreement under which Ionis will acquire the 24% stake in Akcea it does not already own for $18.15 per share — about 60% higher than Akcea's Friday closing price. 

The total transaction value is about $500 million.

The deal has been approved by the boards of both companies and by the independent Affiliate Transactions Committee of Akcea's board, the companies said.

Akcea's board also recommended that shareholders tender their shares into the tender offering.

The transaction is expected to close in the fourth quarter, subject to customary closing conditions.

The Ionis, Akcea Deal Rationale: Ionis said the full integration of Akcea will deliver significant strategic value.

"Following the completion of the transaction, Ionis will retain more value from Akcea's rich pipeline and commercial products, further strengthening our financial position and supporting continued investments in our future," Ionis CEO Brett Monia said in a statement. 

Ionis said it expects to realize more upside from Akcea's rich pipeline and commercial products.

The company also said it would be able to access to Akcea's cash on hand, which stood at $390 million as of June 30. Meaningful cost synergies are also expected, Ionis said.

AKCA, IONS Price Action: Akcea shares were ripping 60.46% higher to $18.26 at the time of publication Monday, while Ionis shares were up 1.69% at $53.68. 

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