RTTNews | Jan 19, 2022 10:09AM EST

10:09 Wednesday, January 19, 2022 (RTTNews.com) - Shares of Zogenix, Inc. (ZGNX) are surging nearly 70% on Wednesday morning on the news that it has agreed to be acquired by Belgian-based UCB SA for $1.9 billion.

Zogenix, a U.S. maker of drugs to treat seizures and rare diseases, is currently trading at $26.37, up $10.73 or 68.61%, on the Nasdaq, on a heavy volume of 13.8 million shares, above average volume of 640 thousand.

Under the terms of the agreement, UCB will commence a tender offer to purchase all outstanding shares of Zogenix for a purchase price of $26.00 per share in cash, plus a contingent value right for a potential cash payment of $ 2.00 upon EU approval by December 31, 2023, of FINTEPLA as an orphan medicine for treatment of Lennox-Gastaut syndrome.

The upfront consideration represents a 72% premium to Zogenix shares based on the 30-day volume weighted average closing stock price of Zogenix prior to signing. The total transaction is valued at up to $1.9 billion or 1.7 billion euros.

The board of directors of both companies have unanimously approved the transaction, the closing of which remains subject to the tender of shares representing at least a majority of the total number of Zogenix's outstanding shares, receipt of required antitrust clearances, and other customary conditions.

Read the original article on RTTNews ( https://www.rttnews.com/3255968/zogenix-stock-surges-70-as-ucb-agrees-to-acquire-the-co-for-1-9-bln.aspx)

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