Israel-based Teva said Monday it agreed to pay $81.50 per share, a 5.8% premium to Cephalon's closing price on Friday.
The price is a 12% premium to an offer that another suitor, Valeant, made for Pennsylvania-based Cephalon in March. That offer was rejected.
The Teva and Cephalon boards have each approved their proposed deal.
The combined company would have a portfolio of branded drugs with $7 billion in annual sales and more than 30 potential products in late-stage development.
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