On Monday, August 28, 2017, Gilead Sciences Inc. and Kite Pharma Inc. announced that the two companies had entered into an agreement, which will see Gilead acquire Kite for $180 per share in cash. The transition values Kite at roughly $11.9 billion and was approved unanimously by the Board of Directors for both companies. Gilead and Kite expects the transaction to close in the 4th quarter of 2017.
Gilead believes the transaction will further diversify its revenues. The transaction is expected to be neutral to earnings by year three and accretive after that point. Kite is considered to be an industry leader in cell therapy, which utilizes the patient’s immune cells to combat cancer.
The research and development and commercialization operations for Kite are expected to remain in Santa Monica, California. Production will remain in El Segundo, California. Gilead will attempt to position itself as a global leader in cell therapy and oncology with the acquisition.