Halozyme Therapeutics (HALO, Financial) is set to acquire Germany-based Evotec (EVO) for €20 billion ($21 billion) in an all-cash deal. CEO Helen Torley expressed confidence in funding the acquisition without issuing equity, relying on a combination of cash reserves and debt. The company plans to use approximately $600 million in cash on hand, supplemented by new debt financing currently being finalized with potential bank lenders.
The acquisition is expected to leverage Halozyme's robust cash flow to reduce debt levels swiftly post-transaction. The San Diego-headquartered company, known for its auto-injector devices that enhance drug delivery efficiency, collaborates with pharmaceutical giants like Johnson & Johnson (JNJ) and Bristol-Myers Squibb (BMS).
Evotec, on the other hand, specializes in assisting pharmaceutical firms with molecule selection and drug manufacturing. The acquisition aligns with Halozyme's strategy to expand its revenue growth by combining its drug delivery capabilities with drug discovery and production.
Private equity firm Triton Partners has also shown interest in acquiring Evotec, having already disclosed holdings in the company. Torley believes this acquisition will complement Halozyme’s existing growth narrative by integrating drug discovery and production with its delivery systems.
