Jazz Pharmaceuticals to Acquire Cannabis Drug Company

Jazz Pharmaceuticals (NASDAQ: JAZZ) announced a $7.6 billion deal to acquire GW Pharmaceuticals (NASDAQ: GWPH), a British biotech company focused on drugs derived from cannabis. The unexpected news sent shares of GW Pharmaceuticals soaring 46%.

Under the terms of the agreement, Jazz will pay $220 per American depositary share (ADS) in the form of $200 in cash and $20 in Jazz shares, a 50% premium to GW's closing price yesterday. The deal values the enterprise at $6.7 billion net of cash that GW carries on its balance sheet and is expected to close in the second quarter of 2021.

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Source Fool.com