Inotiv Inc (NASDAQ: NOTV) shares are rallying on Tuesday after the joint announcement with Envigo RMS Holding Corp that the companies have entered into an agreement for Inotiv to purchase Envigo, a provider of research models and services.
The deal is worth $545million and comprises $200 million of cash and 9,365,173 Inotiv common shares. In addition, Inotiv, a contract research organisation specialising in nonclinical and analytical drug discovery, said it has received committed debt financing to fund the cash part of the deal.
The deal will value the combined company at $1.2 billion.
The transaction is expected to be completed in Q4 2021, with Inotiv shareholders owning approximately 64% of the combined company, while Envigo shareholders are expected to hold around 36%.
“Evolving complexity in the disease research space is creating additional demand for research models, and continued innovation in biopharma is increasing demand for specialty and disease-specific models,” said Inotiv President and CEO, Robert Leasure, Jr.
“The complementary nature of Inotiv and Envigo is expected to accelerate the movement of innovative drugs and medical devices through the discovery and preclinical phases of development,” added Leasure.
Inotiv's share price is one of the biggest movers so far on Tuesday, up 26.87% at $46.70.
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