Pfizer To Buy Hospira In $17 Billion Cash Deal

Pfizer announced on Thursday an agreement to buy Hospira in a cash deal valuing the provider of injectable drugs at $17 billion. As part of the deal, Pfizer will pay $90 a share in cash for each Hospira share outstanding, which represents a 39% premium to Wednesday's closing price. Pfizer expects the deal to add 10 cents to 12 cents a share to earnings in the first full year after the deal is closed. Pfizer's stock rose 1.7% in premarket trade. Hospira's stock, which was still untraded ahead of the open, has gained 22% over the past three months, and closed Wednesday just 2.6% below its Jan. 26 record closing high of $66.50.