Eli Lilly and Company (NYSE: LLY) has reached an agreement to buy DICE Therapeutics, Inc. (NASDAQ: DICE). Eli Lilly will be purchasing all the outstanding shares of DICE for $48 per share in cash. The total amount for this purchase is estimated to be around a whopping $2.4 billion.
The deal is expected to be finalized in the third quarter of 2023, pending customary closing conditions and regulatory approvals. Eli Lilly will launch a tender offer to acquire a majority of DICE’s common stock, and any remaining shares will be acquired through a second-step merger at the same price as the tender offer.
The purchase price represents a 40% premium over the average trading price of DICE’s common stock for the 30-day period leading up to June 16, 2023. DICE’s Board of Directors unanimously recommends that stockholders participate in the tender offer.
The accounting treatment of this transaction, whether as a business combination or an asset acquisition, will be determined by Eli Lilly in accordance with Generally Accepted Accounting Principles (GAAP) upon closing. The financial impact of the acquisition will be reflected in Eli Lilly’s future financial results and guidance.
Kirkland & Ellis LLP is serving as legal counsel for Eli Lilly, while Centerview Partners LLC is acting as the exclusive financial advisor to DICE, with legal counsel provided by Fenwick & West LLP.
DICE DICE Therapeutics Eli Lilly and Company LLY NASDAQ: DICE NYSE: LLY
