HALO.US is set to acquire EVO.US for $2.1bn in cash
1min read According to media reports, Halo Therapeutics (HALO.US) CEO Helen Torley said the company plans to fund the acquisition of German Evotec (EVO.US) with €2bn ($2.1bn) in cash. Torley said in an interview: "We are confident in our ability to fund this transaction with full cash. No equity will be used. She said: "With some debt we took on, our strong cash flow will allow us to quickly bring our leverage down to two times post-transaction."
According to reports, Halo Therapeutics, based in San Diego, is expected to fund part of the acquisition with about $600m in cash on hand and the remaining debt. Torley added that the company is finalizing debt financing with potential bank lenders.
Halo Therapeutics produces auto-injector devices that can deliver large amounts of drugs faster into patients. Its pharma partners include Johnson & Johnson (JNJ.US) and Bristol-Myers Squibb (BMS). Meanwhile, Evotec will help pharma companies choose molecules for further development and drug production.
According to reports, private equity firm Triton Partners disclosed its stake in Evotec and has been considering a takeover. The paper quoted Torley as saying: "We think this is a great way to add to the already strong revenue growth story for Halo Therapeutics. "We have the drug delivery, which will bring the drug discovery and production."