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Lg Chem To Acquire Aveo Oncology For $15.00 Per Share In Cash

Oct 18, 2022•about 3 years ago

Acquiring Company

LG Chem Water Filter Business

Acquired Company

AVEO Pharmaceuticals

BiotechnologyManufacturing

Description

LG Chem, Ltd. (“LG Chem”) (KOSPI: 051910) and AVEO Oncology (“AVEO”) (Nasdaq: AVEO), a commercial stage, oncology-focused biopharmaceutical company committed to delivering medicines that provide a better life for patients with cancer, announced today that they have entered into a definitive agreement under which LG Chem will acquire AVEO for $15.00 per share in an all-cash transaction with an implied equity value of $566 million on a fully diluted basis.

Company Information

Company

LG Chem Water Filter Business

About

LG Chem's water filter business produces reverse osmosis membranes used in various applications including desalination and industrial water treatment. It achieved significant financial growth with strong revenues and profits. The business was established with the acquisition of US-based NanoH2O in 2014.

M&A Insights

Based on deal data
Integration timeline
70% of M&A integrations take 12-24 months to complete
Tech stack consolidation
83% of merged companies consolidate technology vendors within first year
Post-acquisition investment
Companies increase IT spending by 23% on average after acquisitions
Success factor
M&A deals with strong technology integration plans are 2.5x more likely to succeed