Johnson & Johnson (J&J) and Animas, an insulin delivery company, have announced a definitive agreement in which J&J will acquire the company for $518 million in cash and stocks.
Animas is expected to operate as a stand-alone entity reporting through LifeScan, a J&J company offering blood glucose monitoring systems. The acquisition affords LifeScan immediate entry into the fast-growing insulin delivery pump market, J&J said.
Under the deal, Animas stockholders will receive $24.50 for each outstanding Animas share. The net value of the transaction as of the anticipated closing date is estimated to be roughly $518 million based upon Animas' 22 million fully diluted shares outstanding, net of estimated cash on hand at time of closing.
The boards of directors of J&J and Animas have approved the transaction. The deal is subject to approval by federal antitrust regulators and Animas stockholder. The transaction is expected to close in the first quarter of 2006. J&J also has made a $21.5 billion bid to acquire heart device manufacturer Guidant.