-- Sun Pharmaceutical Industries (NSE:SUNPHARMA, BOM:524715) has agreed to acquire US-based Organon & Co in an all-cash deal at an enterprise valuation of $11.8 billion, according to a Monday filing to the Indian stock exchanges.
Under the pact, Sun Pharmaceutical will buy all outstanding shares of Organon for $14.00 per share. It plans to fund the acquisition through a combination of available cash resources and committed financing from banks.
The acquisition is estimated to boost Sun Pharmaceutical's revenues to $12.4 billion.
Organon, which was spun off from Merck in 2021, specializes in women's health and biosimilars and has more than 70 products sold across 140 countries.
The Organon buyout is part of Sun Pharmaceutical's strategy "of growing its Innovative Medicines business," according to Sun Pharma's statement.
The transaction is subject to customary closing conditions, including receipt of required regulatory approvals and
approval by Organon stockholders.