Canada's Concordia Healthcare said it would buy Amdipharm Mercury from private equity firm Cinven for $1.9 billion to expand its portfolio of drugs aimed at treating rare diseases.
Amdipharm Mercury has a portfolio of more than 190 drugs and the deal will provide Concordia entry into areas such as endocrinology, opthalmology and urology, the Canadian drugmaker said on Tuesday.
Including debt, the deal is valued at $3.3 billion. The transaction also includes performance-based payments of up to $220 million, payable in cash in the fourth quarter of 2016.
Cinven is expected to hold 19.9 percent stake in Concordia after the transaction closes, the Canadian drugmaker said.
The deal, which is expected to close in the fourth quarter of 2015, will immediately add to Concordia's adjusted earnings.
Goldman Sachs is the financial adviser to Concordia and Sullivan & Cromwell, Fasken Martineau DuMoulin and Simmons & Simmons are its legal advisers.
Jefferies and Rothschild are Cinven's financial advisers and Clifford Chance, Torys and Jones Day its legal advisers.
Concordia's shares closed at C$110.25 on the Toronto Stock Exchange on Friday.
Up to Friday's close, the stock had more than doubled in value this year.