Akcea Therapeutics Inc (NASDAQ: AKCA) stocks rallied sharply on Monday following a buyout.

The conditions of the Ionis, Akcea agreement: Akcea and its majority owner Ionis Pharmaceuticals Inc (NASDAQ: IONS) announced a definitive deal under which Ionis will acquire the 24% stake in Akcea that it does not already own for $ 18.15 per share, or about 60% more than the closing price of Akcea Friday.

The total value of the transaction is approximately $ 500 million.

The deal has been approved by the boards of directors of both companies and the independent affiliate transactions committee of Akcea’s board of directors, the companies said.

Akcea’s board of directors also recommended that shareholders tender their shares to the takeover bid.

The transaction is expected to close in the fourth quarter, subject to customary closing conditions.

The rationale for the Ionis and Akcea agreement: Ionis said the full integration of Akcea will bring significant strategic value.

“After the transaction closes, Ionis will retain more value of Akcea’s rich pipeline and business products, further strengthening our financial position and supporting continued investments in our future,” said Ionis CEO Brett Monia, in a press release.

Ionis said he expects to take more advantage of Akcea’s rich pipeline and commercial products.

The company also said it would be able to access Akcea’s cash, which stood at $ 390 million as of June 30. Significant cost synergies are also expected, Ionis said.

AKCA, IONS price action: Akcea shares were up 60.46% to $ 18.26 at the time of publication on Monday, while Ionis shares were up 1.69% to $ 53.68.

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