Allergan To Acquire ZELTIQ in $2.47 Billion Deal, ZELTIQ Shares Pop 13%

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Pharmaceutical giant Allergan AGN announced on Monday they will acquire ZELTIQ Aesthetics ZLTQ in a $2.47 billion deal. Allergan expects the deal to close in the latter half of 2017.

ZELTIQ, a medical technology company, focuses on commercializing their proprietary controlled-cooling technology. Their first commercial product is the CoolSculpting System, designed to reduce fat. The system is based on the scientific principle that fat cells are more sensitive to cold compared to their surrounding tissues and skin. The technology treats areas with controlled cooling to reduce the temperature of the fat cells which is intended to eliminate fat cells through a natural biological process named apoptosis.

Allergan plans to integrate ZELTIQ's best-in-class body contouring business with their facial aesthetics, plastic surgery and regenerative medicine business. Body contouring is a $4 billion global market opportunity for Allergen to actualize.

On news of the deal, both Allergan and ZELTIQ shares are up 0.43% and 13.46%, respectively. The deal represents a 14.4% premium on ZELTIQ's Friday closing price of $49.40.

On news of the acquisition, CEO of ZELTIQ, Mark Foley, stated, "Allergan's world-class medical aesthetics products, global footprint, history and commitment to developing best-in-class aesthetic treatments makes the Company ideally suited to realize the maximum commercial potential of the ZELTIQ controlled-cooling technology platform".

The acquisition of ZELTIQ is the latest of Allergan's deal making. Allergan attempted to acquire Pfizer PFE in 2016 for $160 billion. The deal died in early April due to the Obama administration tightening policy to prevent U.S. corporations from moving their tax headquarters overseas as Allergan is headquartered in Ireland and Pfizer in New York.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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