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Valeant, Salix agree to cash deal of $173 per share

Valeant Pharmaceuticals sign at the company's headquarters in Mississauga, Ontario.
Norm Betts | Bloomberg | Getty Images
Valeant Pharmaceuticals sign at the company's headquarters in Mississauga, Ontario.

Valeant Pharmaceuticals agreed to buy Salix Pharmaceuticals for $173 per share, the company announced on Monday.

The agreement between the two pharmaceutical giants amends a previous deal that had Valeant buying the North Carolina-based company for $158 per share, Valeant said in a statement. The new deal also provides Salix shareholders with an additional $1 billion in cash considerations.

"We continue to be very excited about the combination of our two companies and we are committed to getting this deal done," J. Michael Pearson, Valeant's chief executive, said in the statement. "This revised offer provides Salix shareholders with all-cash at a significant premium and the certainty to close by April 1.

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Nevertheless, Valeant's offer will drop back to $158 per share if "all of the conditions to the tender offer have not been satisfied by April 8," the company said in a statement.

Valeant's stock was up more than 1 percent before Monday's open, while Salix shares rose more than 2 percent.