M&A · Healthcare · Pharmaceutical Preparations
Merck Sharp & Dohme Corp. to acquire Pandion Therapeutics, Inc.
Announced Feb 25, 2021 · Closed Apr 1, 2021
Deal value$1.85BEV $1.62B
Premium—To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$60.00 per share
Transaction
- Acquirer
- Merck Sharp & Dohme Corp.
- Target
- Pandion Therapeutics, Inc.
- Buyer type
- Strategic
- Offer price per share
- $60.00
- Enterprise value
- $1.62B
- Status
- Closed Apr 1, 2021
Deal protections
- Break fee (target pays)
- $65.0M · 3.5%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Credit Suisse
- To the target
- Centerview
- Centerview fee
- $41.0M
Sector context · Healthcare
- Comparable deals
- 11 in the prior 24 months
- Premium
- Sector median 52.8%
- EV / Adj. EBITDA
- Sector median 11.6x
- Break fee
- 3.5% vs. 2.8% sector median
Timeline
- AnnouncedFeb 25, 2021
- Tender offerMar 4, 2021
- ClosedApr 1, 2021
Valuation · fairness opinions
Trading comparables$23.45$39.40
Precedent transactions$31.40$55.35
Discounted cash flow$30.60$46.25
Analyst price targets$24.00$28.00
Premiums paid$42.30$50.00
Offer $60.00
Implied value per Pandion Therapeutics, Inc. share by analysis, from Centerview · DCF discount rate 12%–14%.