Jazz Pharmaceuticals Plc JAZZ, +1.32% said Wednesday it has agreed to acquire GW Pharmaceuticals Plc GWPH, +1.51% 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 stock for each share owned, or a premium of about 50% over GW’s closing price on Tuesday, and 60% over its 30-day volume weighted average price. The deal is expected to close in the second quarter, to boost profit in the first year after close and to drive double-digit revenue growth. GW is a leader in therapies based on its proprietary cannabinoid product platform to treat a number of 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 sleep medications and has a growing oncology business. GW Pharma shares soared 46% premarket after resuming trade following a halt for the news. Jazz shares were down 2.7% premarket, but have gained 11% in the last 12 months, while the S&P 500 SPX, +1.39% has gained 18%.
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