M&A · Healthcare · Pharmaceutical Preparations
Bristol Myers Squibb Co to acquire Karuna Therapeutics, Inc.
Announced Dec 22, 2023 · Closed Mar 18, 2024
Deal value$14.00BEV $13.82B
Premium53.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$330.00 per share
Transaction
- Acquirer
- Bristol Myers Squibb Co (BMY)
- Target
- Karuna Therapeutics, Inc.
- Buyer type
- Strategic
- Offer price per share
- $330.00
- Enterprise value
- $13.82B
- Status
- Closed Mar 18, 2024
Deal protections
- Break fee (target pays)
- $490M · 3.5%
- Reverse fee (buyer pays)
- $600M · 4.3%
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Gordon Dyal, Citigroup
- To the target
- Goldman Sachs
Sector context · Healthcare
- Comparable deals
- 100 in the prior 24 months
- Premium
- 53.0% vs. 52.0% sector median
- EV / Adj. EBITDA
- Sector median 17.1x
- Break fee
- 3.5% vs. 3.5% sector median
Timeline
- AnnouncedDec 22, 2023
- Proxy filedJan 22, 2024
- Definitive proxyFeb 5, 2024
- Shareholder voteMar 12, 2024
- ClosedMar 18, 2024
Valuation · fairness opinions
Discounted cash flow$213.89$257.33
Premiums paid$292.66$419.62
Offer $330.00
Implied value per Karuna Therapeutics, Inc. share by analysis, from Goldman Sachs · DCF discount rate 12%–14%.