M&A · Healthcare · Pharmaceutical Preparations
Pfizer Inc to acquire Arena Pharmaceuticals Inc
Announced Dec 13, 2021 · Closed Mar 11, 2022
Deal value$6.70BEV $6.31B
Premium100.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$100.00 per share
Transaction
- Acquirer
- Pfizer Inc (PFE)
- Target
- Arena Pharmaceuticals Inc (ARNA)
- Buyer type
- Strategic
- Offer price per share
- $100.00
- Enterprise value
- $6.31B
- Status
- Closed Mar 11, 2022
Deal protections
- Break fee (target pays)
- $235M · 3.5%
- Reverse fee (buyer pays)
- $350M · 5.2%
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Not disclosed
- To the target
- Guggenheim, Evercore
- Evercore fee
- $36.6M
- Guggenheim fee
- $2.0M
Sector context · Healthcare
- Comparable deals
- 31 in the prior 24 months
- Premium
- 100.0% vs. 45.5% sector median
- EV / Adj. EBITDA
- Sector median 20.4x
- Break fee
- 3.5% vs. 3.3% sector median
Timeline
- AnnouncedDec 13, 2021
- Proxy filedDec 23, 2021
- Definitive proxyJan 3, 2022
- Shareholder voteFeb 2, 2022
- ClosedMar 11, 2022
Valuation · fairness opinions
Discounted cash flowEvercore$82.95$101.00
Precedent transactionsEvercore$69.75$109.80
Analyst price targetsEvercore$71.00$120.00
Trading comparablesEvercore$42.30$69.75
Premiums paidEvercore$72.40$89.90
Discounted cash flowGuggenheim$86.00$107.00
Discounted cash flowGuggenheim$86.00$123.00
Offer $100.00
Implied value per Arena Pharmaceuticals Inc share by analysis, from Evercore and Guggenheim · DCF discount rate 8.5%–10%.