Strongbridge Shares Shoot Higher After Xeris' Buyout Deal At $267M

Xeris Pharmaceuticals Inc XERS has agreed to acquire Strongbridge Biopharma plc SBBP for stock and contingent value rights (CVRs), valuing Strongbridge at approximately $267 million.
The transaction is expected to close early in the fourth quarter of 2021.
The businesses of Xeris and Strongbridge will be combined under a new entity, Xeris Biopharma Holdings Inc, and trade under the XERS ticker on completion of the transaction.
Under the terms of the agreement at closing, each Strongbridge share will be exchanged for 0.7840 shares of the new entity.
Based on the last close price of XERS on May 21, this represents approximately $2.72 per Strongbridge share and a 12.9% premium to the SBBP's last close on Friday.
Strongbridge shareholders will also receive one non-tradeable CVR for each Strongbridge ordinary share they own, worth up to an additional $1.00 payable in cash or Xeris Biopharma Holdings common stock triggered by achievement of certain pre-specified events.
At the close of the transaction, current Xeris shareholders are expected to own approximately 60% of the combined company, while current Strongbridge shareholders are expected to own about 40%.
The combined company is expected to generate approximately $50 million in pre-tax synergies by the end of 2022.
Price Action: SBBP shares are up 14.1% at $2.75, while XERS stock is down 2.88% at $3.37 during the premarket session on the last check Monday.