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Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each share held, for a total consideration of $188.24 per Allergan share, a premium of 45% to Allergan’s Monday close.
The deal is expected to add 10% to adjusted earnings per share over the first full year following the close, the companies said.
AbbVie will continue to be incorporated in Delaware as AbbVie and will be led by Richard Gonzalez as chairman and chief executive officer.
Two members of Allergan’s board, including Chief Executive Officer Brent Saunders, will join AbbVie’s board upon completion of the transaction.
Allergan’s shares soared nearly 30% in premarket trading. Shares of AbbVie were down more than 10%.
The Wall Street Journal first reported news of the deal earlier Tuesday.
—CNBC contributed to this report.