Jazz Pharmaceuticals Plc JAZZ,
said Wednesday it agreed to acquire GW Pharmaceuticals Plc GWPH,
in a cash and stock deal valued at $ 7.2 billion. Under the terms of the deal, Jazz Pharma will pay $ 200 per share in cash and $ 20 in shares for each share owned, or a premium of approximately 50% on the closing price of GW on Tuesday and 60% on the weighted average volume of 30 days. price. The deal is expected to close in the second quarter, to increase profits in the first year after closing and to boost double-digit revenue growth. GW is a leader in therapies based on its proprietary platform of cannabinoid products to treat various diseases. The company was the first to receive FDA approval for a CBD-based treatment for severe forms of childhood epilepsy in its Epidiolex lead product. Jazz makes sleeping pills and has a growing cancer business. Shares of GW Pharma shot up 46% before the market after resuming trading after the news stopped. Shares of Jazz fell 2.7% ahead of the market, but have gained 11% in the last twelve months, while the S&P 500 SPX,
has gained 18%.