High-Technology Acquisitions
Final Project -Acquisition Proposal:

To Acquire:

May 2012

Table of Content
Executive Summary I A. Purpose I B. Background I C. The Rational for the Acquisition I D. Standalone, Synergy and Premium Valuations II E. Integration Plan II
Part 1 - The Rational of the Acquisition 1 1. Pfizer's Strategy 1
1.1. Pfizer Growth Strategy 2 2. Pfizer's Road Map 4
2.1. Pfizer's Acquisitions Rational 4 3. The strategy behind the acquisition 5
3.1. Acquisition Motives 5
3.2. M&A vs. Alliance 5 4. Target Identification 7
4.1. Protalix - an R&D Acquisition 9 5. Synergy Analysis 10 6. Standalone, Synergy and Premium Valuations 12
6.1. Market Value 12
6.2.
C. The Rational for the Acquisition
We see this acquisition as beneficial for both sides. For Pfizer, this acquisition provides a suitable step according to its growth strategy, allowing it to develop and diversify its product portfolio and provide new and improved treatments for its customers. The synergy that will be created is reflected as a revenue synergy and a cost synergy. It will allow Pfizer to leverage its asset, capabilities and competitive position by: 1. Increasing revenues from the Eleleyso; 2. R&D leveraging; 3. Gaining a foothold in the "Biologics" area; 4. Economies of Scale - Reducing manufacturing costs and maximizing production capacity using Pfizer resources and Protalix's technology.
On Protalix's behalf, being acquired by Pfizer is a great opportunity to cross the chasm with its innovative technology and widely implement it in the pharmaceutical market, in addition to gaining the complementary assets needed for its success. D. Standalone, Synergy and Premium Valuations *Transaction multiples include premiums
Stand-alone value
Value with synergy
Walk-away
Price
$578,573
$672,772
$528,209
$725,772
$924,841
$580,704
Trading Revenue Multiple
Market Cap
DCF
Trading
EBITDA Multiple
Trans.*
Revenue
Multiple
Trans.*