NGM Biopharmaceuticals Acquisition: A Strategic Move by Atlas Neon
NGM Biopharmaceuticals shares have been halted at $1.92 as the company undergoes acquisition by Atlas Neon Parent and Atlas Neon Merger Sub for $1.55 per share in cash. This strategic move is orchestrated by affiliates of The Column Group, NGM Bio’s largest stockholder, with 26% of outstanding shares.
Premium Deal with Strong Financial Backing
With existing stockholders agreeing to contribute their shares rather than receive the cash price, the total equity value of the transaction is $135 million, reflecting an impressive 80% premium over the Dec. 29 closing price. NGM Bio’s robust financial position with cash, cash equivalents, and short-term marketable securities totaling $166 million as of Sept. 30, 2023, and an estimated $144.2 million as of Dec. 31, underscores the favorable terms of the deal.
Strategic Transition to Privately Held Entity
Anticipated to finalize in the second quarter of 2024, the acquisition will transition NGM Bio into a privately held company, leading to the delisting of its shares from Nasdaq. This move marks a significant transformation for NGM Bio and sets the stage for future strategic initiatives.
The acquisition signals a shift in ownership structure and sets the groundwork for potential growth and innovation under the stewardship of Atlas Neon. For more information, stay tuned as this development unfolds.
