M&A · Healthcare · Pharmaceutical Preparations
GlaxoSmithKline PLC to acquire Sierra Oncology, Inc.
Announced Apr 13, 2022 · Closed Jul 1, 2022
Deal value$1.90BEV $1.80B
Premium39.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$55.00 per share
Transaction
- Acquirer
- GlaxoSmithKline PLC (GSK)
- Target
- Sierra Oncology, Inc.
- Buyer type
- Strategic
- Offer price per share
- $55.00
- Enterprise value
- $1.80B
- Status
- Closed Jul 1, 2022
Deal protections
- Break fee (target pays)
- $70.0M · 3.7%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- PJT Partners
- To the target
- Lazard
- Lazard fee
- $44.0M
Sector context · Healthcare
- Comparable deals
- 40 in the prior 24 months
- Premium
- 39.0% vs. 46.0% sector median
- EV / Adj. EBITDA
- Sector median 20.4x
- Break fee
- 3.7% vs. 3.3% sector median
Timeline
- AnnouncedApr 13, 2022
- Proxy filedMay 2, 2022
- Definitive proxyMay 16, 2022
- Shareholder voteJun 29, 2022
- ClosedJul 1, 2022
Valuation · fairness opinions
Discounted cash flow$38.05$43.45
Trading comparables$27.05$37.65
Precedent transactions$27.05$44.75
Trading comparables$59.05$80.90
Trading comparables$53.20$74.60
Offer $55.00
Implied value per Sierra Oncology, Inc. share by analysis, from Lazard · DCF discount rate 10%–12%.