Johnson & Johnson to acquire Ambrx Biopharma for $2B in cash

Johnson & Johnson (JNJ) announced it has entered into a definitive agreement to acquire Ambrx Biopharma (AMAM) in an all-cash merger transaction for a total equity value of approximately $2B, or $1.9B net of estimated cash acquired. Under the terms of the transaction, which was approved by the Johnson & Johnson board of directors, Johnson & Johnson will acquire all of the outstanding shares of Ambrx’s common stock for $28.00 per share in cash through a merger of Ambrx with a subsidiary of the company. The closing of the transaction is expected to occur in the first half of 2024, subject to receipt of Ambrx shareholder approval, as well as clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The approximately $1.9 billion estimated net value of the transaction is based on Ambrx’s estimated fully diluted shares outstanding, less estimated net cash at the time of closing. Following completion of the transaction, Ambrx’s common stock will no longer be listed for trading on the Nasdaq Global Select Market. The accounting treatment as a business combination or asset acquisition will be determined on or before the expected close of the transaction.