LONDON - The Norwegian cancer drug maker Algeta said Thursday that it had agreed to be acquired by the German drug giant Bayer in a deal valued at about $2.9 billion.
Bayer made a preliminary offer for the company last month of about $2.4 billion, but later raised its bid.
Algeta said on Thursday that Bayer, through a subsidiary, intends to launch a cash tender offer to acquire the outstanding stock of the company for 362 Norwegian kroner, or about $59.13, a share. The offer is a 37 percent premium on Algeta’s closing price on Nov. 25, the day before the preliminary offer was announced.
Algeta said its board had unanimously recommended that shareholders accept the offer.
“We believe the offer recognizes the strategic value of Algeta and delivers a considerable cash premium to our shareholders.†Stein Holst Annexstad, Algeta’s chairman, said.
Algeta’s largest shareholder, the venture capital firm HealthCap, and Algeta’s directors have agreed to tender their shares. The transaction is subject to regulatory approval and shareholders must tender a minimum of 90 percent of the company’s stock.
Bayer and Algeta are already partners in selling the prostate cancer drug Xofigo, the use of which was approved by the United States Food and Drug Administration in May. The companies have worked together on developing the drug since 2009.
To combat the rising costs of developing new drugs, larger pharmaceutical firms are increasingly entering collaboration agreements or acquiring smaller companies shortly after their drugs are approved for use on the market.
The deal is the latest a series of small to midsize acquisitions made by Bayer in the past year to expand its business. In June, Bayer acquired Conceptus, the American maker of the Essure birth control product, for $1.1 billion. In July, it completed its acquisition of Steigerwald Arzneimittelwerk, a family owned German company that specializes in herbal medicines.
Goldman Sachs is Algeta’s financial adviser and Skadden, Arps, Slate, Meagher & Flom and Wikborg, Rein & Co. are acting as Algeta’s legal advisers.
Shares of Algeta rose 1.5 percent to 359 Norwegian kroner in trading early Tuesday in Oslo.
