M&A · Healthcare · Pharmaceutical Preparations
Merck & Co., Inc. to acquire Prometheus Biosciences, Inc.
Announced Apr 16, 2023 · Closed Jun 16, 2023
Deal value$10.80BEV $10.51B
Premium75.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$200.00 per share
Transaction
- Acquirer
- Merck & Co., Inc. (MRK)
- Target
- Prometheus Biosciences, Inc.
- Buyer type
- Strategic
- Offer price per share
- $200.00
- Enterprise value
- $10.51B
- Status
- Closed Jun 16, 2023
Deal protections
- Break fee (target pays)
- $325M · 3.0%
- Reverse fee (buyer pays)
- $651M · 6.0%
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Morgan Stanley
- To the target
- Centerview, Goldman Sachs
- Centerview fee
- $70.5M
Sector context · Healthcare
- Comparable deals
- 77 in the prior 24 months
- Premium
- 75.0% vs. 47.9% sector median
- EV / Adj. EBITDA
- Sector median 21.1x
- Break fee
- 3.0% vs. 3.5% sector median
Timeline
- AnnouncedApr 16, 2023
- Proxy filedApr 28, 2023
- Definitive proxyMay 16, 2023
- Shareholder voteJun 15, 2023
- ClosedJun 16, 2023
Valuation · fairness opinions
Discounted cash flowCenterview$128.60$152.35
Analyst price targetsCenterview$138.00$225.00
Premiums paidCenterview$171.00$205.20
Other analysisGoldman Sachs$129.78$161.59
Premiums paidGoldman Sachs$168.51$201.57
52-week trading rangeGoldman Sachs$154.28$202.51
Offer $200.00
Implied value per Prometheus Biosciences, Inc. share by analysis, from Centerview and Goldman Sachs · DCF discount rate 12%–13.5%.