06:31 AM EST, 11/15/2024 (MT Newswires) -- Halozyme Therapeutics ( HALO ) offered to acquire German drug maker Evotec (EVO) in a deal with an equity value of 2 billion euros ($2.11 billion).

Halozyme submitted a non-binding proposal to Evotec's management and supervisory board to buy the company for 11 euros a share in cash, the biotechnology company said late Thursday. The offer represents a 109% premium to Evotec's closing share price on Oct. 15, the day before private equity firm Triton Partners built a roughly 10% stake in the company.

Evotec's US-listed stock advanced 5.7% in Friday's premarket activity, while Halozyme dropped 2%.

"I am excited about the potential to bring together best-in-class innovative technologies and both organizations' capabilities to create a pan US/European innovative services company," Chief Executive Helen Torley said in a statement. "With increased scale, a deep pipeline, and a diversified offering, we would be a highly attractive strategic partner to the biopharma industry."

Halozyme expects the combination to "meaningfully" diversify, scale and extend its revenue and adjusted earnings before interest, taxes, amortization and depreciation "well into" the next 10 years and beyond.

Halozyme doesn't expect the potential transaction to require any financing contingency as it has substantial cash reserves on hand and a "strong balance sheet." It expects the deal to meet the requirements of German financial regulator BaFin regarding financing.

In a separate statement, Evotec confirmed that it received the acquisition proposal by Halozyme. The company plans to evaluate the offer and will decide on the next steps.

Price: 51.56, Change: -2.40, Percent Change: -4.45